After falling sharply in July, U.S. consumer confidence rebounded in August to the strongest reading in seven months.
Economists say that, even though recent turbulence in the stock market, including the historical losses on the Dow Jones Industrial Average on Monday rattled consumers' nerves, the stock market turmoil would likely be offset by the steep decline in oil prices, leaving consumers with more money to spend.
During August, consumer expectations about current conditions were more favorable.
The jobs market received a considerably more favorable opinion by consumers, during the month.
The view by consumers of plentiful jobs in August rose to 21.9% versus an increase by 19.9% in July. During the month, consumers who viewed jobs as "hard to get" decreased from 27.4% in July.
On Tuesday, the Conference Board said that its index of consumer confidence increased to 101.5 in August, up from a revised July reading of 91.0.
Lynn Franco, Conference Board economist says that consumers' assessment of current conditions was considerably more upbeat in August, primarily due to a more favorable view of the labor market.
Contributed by Millennium Traders
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