A report from Conference Board showed a recovery in consumer confidence in August according to preliminary data. Analysts at Well Fargo point out the rebound in confidence to its highest level since May took pace as gas prices fell throughout the month and stock prices rose during the first half of it.
“Lower gas prices throughout the month and a rebound in equities through the first half of it breathed some fresh life into consumer confidence in August. The headline print of 103.2 was a bigger gain than the consensus had expected and returns confidence to a level last seen in May.”
“While gasoline prices have continued to trend lower throughout the month, stock prices have not. The roughly 6.5% decline in the S&P 500 since August 16 could weigh on confidence if markets remain under pressure.”
“While it is true that employers report difficulty finding help these days, monetary policymakers are charting a course that is intended to bring labor supply and demand more into balance. On Friday of this week the official employment report will be released, and we would be surprised by job growth continuing anywhere near the July pace in the months ahead. We expect employers added 325K people to their payrolls in August.”