The Conference Board, a private research group, reported Tuesday that its consumer confidence index rebounded in August on optimism that the worst of the recession is over.
The report, which is based on a survey of 5,000 households, showed that the consumer confidence index rose to 54.1 in August, up from a revised figure of 47.4 in July, which was initially reported as 46.6.
The market had expected the consumer confidence index for August to rise to an average of 47.9; economists surveyed by MarketWatch had forecast an average increase to 48.0.
Lynn Franco, Director of The Conference Board Consumer Research Center, stated, "The Consumer Confidence Index appears to have started regaining some lost ground."
The August report indicated that consumers are somewhat more optimistic about current economic conditions but clearly more positive about the economy and their financial situation over the next six months.
The Expectations Index climbed to 73.5 in August from 63.4 in July, the highest level since December 2007 when the U.S. first entered the recession. The Present Situation Index rose to 24.9 from 23.3 in July.
Franco added, "Consumers were moderately more optimistic in August about business and labor market conditions in the short-term, while income expectations improved only slightly. As long as income continues to weigh heavily on consumers' minds, spending will likely remain constrained."
The August report also revealed that the percentage of consumers saying jobs are hard to get fell to 45.1% from 48.5% in July, while those claiming jobs are plentiful increased to 4.2% from 3.7%.
Looking ahead to the next six months, 18.4% of consumers expect more jobs to become available, compared with 23.3% who anticipate fewer opportunities.