US: Strong labor market continues to boost consumer confidence - Wells Fargo

Analysts at Wells Fargo, points out that after a modest increase in July, the Consumer Confidence Index jumped 5.5 points in August to 133.4, boosted by both, the present situation and the expectations components. 

Key Quotes: 

“The Consumer Confidence Index rose 5.5 points in August, with gains in both present and future expectations. Current optimism continues to be a reflection of the tightening labor market, as the share of consumers stating jobs as plentiful was little changed, and those who see jobs as hard to get fell 2.1 points. This pushed the labor differential up to its highest level since 2001, which is consistent with the near record low unemployment rate.”

“Despite recent political volatility, consumer expectations rebounded in August. Consumers generally expect their incomes to rise over the next six months, while employment conditions are expected to remain fairly stable.”