Consumer confidence stays constant in August amid China trade war
American consumers felt slightly less confident in August as the U.S. and China continued enacting tit-for-tat tariffs, although the outlook on the two countries coming to an agreement improved toward the end of the month.
The Conference Board Consumer Confidence Index fell to 135.1 this month from 135.8 in July, the business research group said on Tuesday. The Consumer Confidence Index is staying basically the same after falling to 121.5 in June. That was the index's first drop in three months.
"Consumer confidence was relatively unchanged in August, following July’s increase," said Lynn Franco, the senior director of economic indicators at the Conference Board. "Consumers' assessment of current conditions improved further, and the Present Situation Index is now at its highest level in nearly 19 years (Nov. 2000, 179.7)."
The Present Situtation Index examines consumers' assessment of current business and market conditions. The Consumer Confidence Index takes a look at consumers' attitudes toward the U.S. economy. Positive attitudes tend to result in more money spent on goods.
Consumers' assessment of business conditions six months from now were slightly less optimistic than last month, as was consumers' assessment of the labor market, the business research group said.
Tuesday's consumer confidence numbers come after retailers Target and Lowe's reported unexpectedly good results last week. Shares of both companies shot up after the news. The Consumer Confidence Index used information with a cutoff date of Aug. 16.
CLICK HERE TO READ MORE ON FOX BUSINESS
Consumer confidence was static amid continued trade tensions between the U.S. and China, although President Donald Trump said his negotiators were encouraged by recent communications from China on Sunday. The Chinese foreign ministry denied knowledge of any such communications, but stocks still received a boost early Monday after Trump's announcement.