Consumer confidence reaches six-month high, but labor market worries rise
The Claman Countdown panelists Scott Redler and Michael Landsberg give their take on the possibility of a recession.
U.S. consumer confidence reached a six-month high in August as optimism about the economy rose, although Americans are increasingly anxious about the labor market after the unemployment rate rose last month.
The better-than-expected consumer confidence reading from the Conference Board's report reflected improved perceptions of business conditions in the next six months and suggested that the odds of the U.S. economy experiencing a recession continued to decline.
Americans' unease with the labor market comes after the unemployment rate increased to 4.3% last month, which is near a three-year high. Federal Reserve Chair Jerome Powell and central bank policymakers have shifted their focus from tamping down inflation, which is trending toward the Fed's 2% target, to the labor market as Powell signaled on Friday that interest rate cuts are coming.
«Consumers continued to express mixed feelings in August,» said Dana M. Peterson, chief economist at The Conference Board. «Compared to July, they were more positive about business conditions, both current and future, but also more concerned about the labor market.»
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The Conference Board's report showed that consumer confidence edged up even as consumers' concerns about the labor market rose. (Photo by Robert Nickelsberg/Getty Images / Getty Images)
«Consumers' assessments of the current labor situation, while still positive, continued to weaken, and assessments of the labor market going forward were more pessimistic. This likely reflects the recent increase in unemployment. Consumers were also a bit less
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