Us Consumer Confidence Turns Higher

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Us Consumer Confidence Turns Higher

Us Consumer Confidence Touched 6-Month High

August was a good month for the US economy as consumer confidence has reached a 6-month high. The reason for this is the upcoming rate cuts and an increased optimism about the economic situation.

However, the survey also showed that US citizens are now worried about the situation of the labor market as the unemployment rates have reached 3-year highs. Last month's data shows that the US unemployment rate has now reached 4.3%.

Less Chance Of Recession

Overall, the data showed an improvement in consumer confidence, according to the Conference Board's report. The survey also showed that the prospects of a recession in the US economy had gone down during August.

Consumers are worried about the labor market, and it seems that the Federal Reserve has already noticed. That's why Powell announced the rate-cutting cycle that will start in September.

The report also showed that inflation expectations have gone down due to the soft labor market. However, this weakness has not reached the point where it could be called a recession.

The consumer confidence index, which is released by the Conference Board, showed a reading of 103.3 in August. This reading was the highest and only last seen in February.

According to third-party economists, the actual reading was a lot higher than what they initially forecasted. The confidence among the citizens aged 35 or higher was the highest.

It seems that the ongoing US elections have also played a role in consumer confidence. With the changed political situation, the US consumers have also readjusted their expectations about the economy.

Overall, the reading was a positive for the US economy, but that could also change if the outcome of the US elections leads to a surprise. Despite this, the upcoming rate-cutting cycle of the Federal Reserve will surely improve consumer confidence and make it to new highs.

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