US consumer confidence rises above expectations in August

The Conference Board’s consumer confidence index showed an increase in consumer confidence for August, rising to 103.3 from 101.9 in July, surpassing forecasts.
However, there are growing concerns about the labor market. Despite the overall rise in confidence, consumers’ views on the labor market are becoming more pessimistic.
The percentage of consumers who believe jobs are “plentiful” declined slightly to 32.8%, while those who consider jobs “hard to get” increased marginally to 16.4%.

These concerns about the labor market are significant enough that Federal Reserve Chair Jerome Powell has hinted at potential interest rate cuts, with financial markets anticipating a possible 25-basis-point reduction next month.
There’s also speculation that a larger 50-basis-point cut could occur, reflecting the anxiety over the economic outlook.
Meanwhile, consumers’ inflation expectations for the next 12 months dropped to 4.9%, the lowest since March 2020, indicating some relief on the inflation front.