US consumer confidence rises in August, ending 3-month decline

By Ovunc Kutlu

ANKARA (AA) - US consumer confidence rose in August, ending three straight months of declines, according to data released by the Conference Board.

The Consumer Confidence Index, a leading indicator of consumer spending and economic activity, soared 7.9 points to 103.2, up from 95.3 in July, the New York-based global research group said in a report on Tuesday.

The expectation for the index was for it to come in at 97.9.

"Concerns about inflation continued their retreat but remained elevated," Lynn Franco, senior director of economic indicators at the Conference Board, said in a statement.

"Meanwhile, purchasing intentions increased after a July pullback, and vacation intentions reached an eight-month high. Looking ahead, August’s improvement in confidence may help support spending, but inflation and additional rate hikes still pose risks to economic growth in the short term," Franco added.

The Present Situation Index, based on consumers’ assessment of current business and labor market conditions, saw a gain for the first time since March, up 5.7 points to reach 145.4 in August, from 139.7 in July.

The Expectations Index, based on consumers’ short-term outlook for income, business, and labor market conditions, climbed 9.5 points to 75.1 from 65.6 during that period.