After taking a slight step back last month, U.S. consumer confidence rebounded strongly in August.
The Conference Board Consumer Confidence Index now stands at 101.5, up more than 10 points from the 91.0 seen in July and the second-highest reading of 2015. The index reached a 7.5-year high of 103.8 back in January of this year.
"Consumer confidence rebounded in August, following a sharp decline in July," said Lynn Franco, Director of Economic Indicators at The Conference Board. "Consumers' assessment of current conditions was considerably more upbeat, primarily due to a more favorable appraisal of the labor market."
The Conference Board says that consumers' assessment of current conditions was considerably more favorable in August. Those saying business conditions are "good" decreased marginally from 23.4 percent to 23.2 percent. Those claiming business conditions are "bad" declined modestly from 18.2 percent to 17.6 percent.
Consumers were considerably more positive about the job market. Those stating jobs are "plentiful" increased from 19.9 percent to 21.9 percent, while those claiming jobs are "hard to get" decreased from 27.4 percent to 21.9 percent.
Consumers' optimism about the short-term outlook also improved in August. The percentage of consumers expecting business conditions to improve over the next six months increased slightly from 15.3 percent to 15.8 percent, while those expecting business conditions to worsen declined from 10.3 percent to 8.3 percent.
"The uncertainty expressed last month about the short-term outlook has dissipated and consumers are once again feeling optimistic about the near future," Franco added.
The monthly Consumer Confidence Survey, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a global provider of information and analytics around what consumers buy and watch.
Source: The Conference Board