US consumer confidence improves in August - Conference Board

US consumer confidence improved more than expected in August, according to data released on Tuesday.

The Conference Board's consumer confidence index rose to 103.2 from 95.3 in July, coming in ahead of expectations for a reading of 98.00.

The present situation index - based on consumers’ assessment of current business and labour market conditions - improved to 145.4 from 139.7 last month. Meanwhile, the expectations index - based on the short-term outlook for income, business, and labour market conditions - rose to 75.1 in August from 65.6 a month earlier.

Lynn Franco, senior director of Economic Indicators at the Conference Board, said: "Consumer confidence increased in August after falling for three straight months. The present situation Index recorded a gain for the first time since March. The expectations index likewise improved from July’s nine-year low, but remains below a reading of 80, suggesting recession risks continue. Concerns about inflation continued their retreat but remained elevated.

"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."