Consumer confidence spikes to the highest level in 11 months

The Conference Board’s consumer confidence index jumped to 101.1 in August.

That was the best reading since September 2015.

Economists had forecast that the index was little changed compared to July at 97, according to Bloomberg.

Consumers’ outlook for the labour market and current business conditions improved compared to July. The share of people saying jobs were “plentiful” increased from 23% to 26%, the highest since January 2008.

“We expect consumer spending to remain the key driver of domestic demand, albeit at a more moderate pace than the robust 4.4 per cent annualized rate registered in Q2,” said Wells Fargo’s Sam Bullard in a preview.

Consumers’ buying intentions improved for homes and appliances, and fell a bit for cars.

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