The US Conference Board Consumer Confidence Index which had declined in July, improved moderately in August. The Index now stands at 53.5 (1985=100), up from 51.0 in July. The Present Situation Index decreased to 24.9 from 26.4. The Expectations Index increased to 72.5 from 67.5 last month. The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households. The monthly survey is conducted for the New York based private sector Conference Board by TNS, which is a global research company. The cutoff date for August’s preliminary results was August 24th and in New York, the better-than-expected reading of consumer confidence provided some encouragement to investors bracing for slower economic growth.

Says Lynn Franco, Director of The Conference Board Consumer Research Center: “Consumer confidence posted a modest gain in August, the result of an improvement in consumers’ short-term outlook.  Consumers’ assessment of current conditions, however, was less favorable as employment concerns continue to weigh heavily on consumers’ attitudes. Expectations about future business and labor market conditions have brightened somewhat, but overall, consumers remain apprehensive about the future.  All in all, consumers are about as confident today as they were a year ago (Aug. 2009, 54.5)."

Consumers’ appraisal of current conditions continued to weaken in August. Those claiming business conditions are “good” decreased to 8.7% from 8.8%. However, those stating business conditions are “bad” declined to 41.9% from 43.3%. Consumers’ assessment of the labor market deteriorated further. Those saying jobs are “hard to get” increased to 45.7% from 45.1%, while those claiming jobs are “plentiful” declined to 3.8% from 4.4%.

Consumers’ expectations improved moderately in August, but overall, they remain pessimistic. Those anticipating an improvement in business conditions over the next six months increased to 17.0% from 15.8%, while those anticipating conditions will worsen declined to 13.4% from 15.3%.

Consumers were also slightly less pessimistic about future employment prospects. Those expecting more jobs in the months ahead increased to 14.6% from 14.2%, while those anticipating fewer jobs decreased to 19.4% from 20.9%. The proportion of consumers expecting an increase in their incomes held steady at 10.6%.