Consumer confidence rose in August to its highest level since October 2000.
The Conference Board’s consumer confidence index rose to 133.4 in August, defying expectations that it would drop from July’s strong reader of 127.4.
The big improvement came from increased confidence about the future, according to the Conference Board.
“Consumers’ assessment of current business and labor market conditions improved further. Expectations, which had declined in June and July, bounced back in August and continue to suggest solid economic growth for the remainder of 2018,” said Lynn Franco, Director of Economic Indicators at The Conference Board.
The percentage of consumers expecting business conditions will get better over the next six months increasing to 24.3 percent from 22.9 percent.
Consumer views of current conditions also improved. The share of those saying business conditions are “good” increased from 38.1 percent to 40.3 percent, while those saying business conditions are “bad” declined from 10.3 percent to 9.1 percent.
“These historically high confidence levels should continue to support healthy consumer spending in the near-term,” Franco added.