The numbers: Consumer confidence in the United States soared in August to an 18-year high, reflecting surging growth in the economy and the lowest unemployment rate in almost two decades.
The consumer confidence index jumped to 133.4 from a revised 127.9 in July, the Conference Board said Tuesday. That’s the highest level since October 2000 and beats the previous postrecession peak of 130 in February.
What happened: The present situation index, a measure of current conditions, climbed to 172.2 from 166.1. That’s also the highest level since 2000.
The future expectations index advanced to 107.6 from 102.4
Big picture: Americans have rarely felt this good about the economy. Aside from an Internet-fueled boom from 1997 to 2000, consumer confidence in the United States has never been higher.
Millions of Americans have found work, layoffs have fallen to levels last seen in the late 1960s, incomes are rising and businesses are investing. The U.S. economy expanded at a lusty 4.1% annual clip in the second quarter.
What they are saying? “Overall, these historically high confidence levels should continue to support healthy consumer spending in the near-term,” said Lynn Franco, director of economic indicators at board.
Market reaction: The Dow Jones Industrial Average
and the S&P 500
both rose in Tuesday trades, with the S&P hitting another record. The stock market has surged after President Trump announced a pending new free-trade deal with Mexico.
The 10-year Treasury yield
rose to 2.88% to extend a recent upswing. Bond yields had climbed to as high 3% earlier this year before retreating.