America’s consumer continues to fuel the economy, and they are confident that the good times will continue.
Although economists expected consumer confidence would take a hit in August, following a very strong July, American consumers remain far more confident in the US economy than many predicted.
In August, the Conference Board consumer confidence index stood at 135.1, slightly down from 135.8 in July, but far above the Refinitiv consensus forecast of 129.5.
“Consumers’ assessment of current conditions improved further, and the present situation index is now at the highest level in nearly 19 years,” said Lynn Franco, senior director of economic indicators at The Conference Board.
The strong labor market is helping consumers set aside worries about the trade war between the United States and China.
“The consumer is two-thirds of the economy so their bubbly confidence more than compensates for the concerns registered by manufacturing executives,” said MUFG chief financial economist Chris Rupkey, who expected some 2% of economic growth this year.
Deutsche Bank Wealth Management Americas CIO Deepak Puri even expects growth of 2.3% in 2019 on the back of robust consumer spending and strong wage growth.