U.S. consumer confidence jumped in August to its strongest level since October 2007 due to optimism about the pace of the economic recovery, a private industry report released on Tuesday showed.
The Conference Board reported that its gauge of consumer sentiment jumped to 92.4 in August compared with a revised 90.3 in July. Economists surveyed by Reuters had expected a measure of 89. The present situation gauge rose to 94.6, the most since Feb. 2008, from July’s reading of 87.9, while the expectations index plunged to 90.9, compared with a revised 91.9 a month ago.
“Consumer confidence increased for the fourth consecutive month as improving business conditions and robust job growth helped boost consumers’ spirits,” said Lynn Franco, a director of economic indicators at The Conference Board.
Consumers also exuded optimism about the state of the labor markets. The “jobs hard to get” gauge declined to 30.6 percent in August from July’s reading of 30.9 percent, while the “jobs plentiful” index surged to 18.2 percent from 15.6 percent a month before.
However, a measure of inflation forecasts in the next one year rose from 5.4 percent to 5.5 percent.
Meanwhile, U.S. durable goods orders rose by a record pace in July, boosted by international bookings for commercial aircraft. Orders for the long-lasting manufactured goods, which include microwave ovens and aircraft, rose 22.6 percent in July, reported the Commerce Department on Tuesday. This compared with a revised gain of 2.7 percent in June.
Transportation orders grew 74.2 percent due to an upsurge in civilian aircraft orders that more than tripled. Boeing had earlier announced that its order book swelled by an additional 324 aircrafts in July, while automobile orders rose the most in five years. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
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