U.S. consumer sentiment continues to rise in August, consumer spending to be strong in Q3

Consumer sentiment in the U.S. continues to rise in August. The Conference Board’s index of consumer confidence rose to 122.9 in August, extending the prior month’s gains. Even if the index was expected to stay at strong levels, the outturn was better than anticipated. Consensus expectations were for the index to have come in at 120.7, while Barclays projection was for 120. The July print was revised down slightly to 120.0.

Delving into details, the present situation index drove much of the rise in August, rising to 151.2 from 145.4. The labor market differential, which gauges the net share of consumers that saw employment as abundant also rebounded to 18.1 from 14.5.

The expectations sub-index rebounded modestly by one point to 104. Overall, today’s report implies that household sentiment continues to be on a strong footing and this is viewed as constructive for consumer spending in the third quarter, noted Barclays in a research report.

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