Americans are feeling a little bit better about the economy. In August, consumer confidence rose to 103.3 — up from 101.9 in July.

The Conference Board’s latest Consumer Confidence Index released Tuesday found more Americans think business conditions are good right now and will continue to be good in six months. 

What You Need To Know

  • In August, consumer confidence rose to 103.3 — up from 101.9 in July

  • The Conference Board’s latest Consumer Confidence Index released Tuesday found more Americans think business conditions are good right now and will continue to be good in six months

  • The index found 32.8% of consumers said jobs were plentiful this month (down from 33.4% in July)

  • Consumers under the age of 35 were less confident about the economy than people older than 35

“Overall consumer confidence rose in August but remained within the narrow range that has prevailed over the past two years,” Conference Board Chief Economist Dana M. Peterson said in a statement. “Consumers continued to express mixed feelings in August.”

Despite their positive feelings about business conditions, more Americans are worried about jobs in August compared with last month. Right now, they feel positively about the labor market, though they are more pessimistic about the future.

The index found 32.8% of consumers said jobs were plentiful this month (down from 33.4% in July), while 16.4% of consumers said jobs were hard to get (up from 16.3% last month). Six months from now, 17.5% of consumers think there will be fewer jobs (up from 16.4% in July).

“This likely reflects the recent increase in unemployment,” Peterson said. 

The unemployment rate in July was 4.3% — an increase of 0.2% compared with June, according to the U.S. Bureau of Labor Statistics. A year earlier, the unemployment rate was 3.5%.

In August, fewer consumers expect their income to increase, and more expect their income to decrease.

Consumers under the age of 35 were less confident about the economy than people older than 35. In August, confidence declined for people earning less than $25,000 annually. Those who earn more than $100,000 are the most confident. 

Consumer expectations about inflation over the next 12 months fell to their lowest level since March 2020. In July, the Consumer Price Index (CPI) rose 2.9% compared with a year earlier. It was the smallest annual increase since March 2021.

More consumers are also expecting interest rates to fall over the next year, according to the most recent index.

As home prices continue to increase, consumers’ plans to purchase homes fell to a 12-year low, despite the expectation of lower interest rates. Their plans to buy cars, refrigerators, TVs, washing machines, smartphones and personal computers, however, improved.