US: Solid consumer confidence in August – Wells Fargo

Mark Vitner, Senior Economist at Wells Fargo, notes that the US consumer Confidence rose 4.4 points in August to 101.1 and is back near its high for this cycle.

Key Quotes

“Both the present situation and expectations series increased and consumers feel more positive about the job market.

Consumers largely shrugged off any lingering concerns about the Brexit vote and the temporary turmoil it unleashed. The vote, which occurred after the June survey but well ahead of the July survey, weighed on expectations for future economic conditions. The stock market’s quick recovery and sustained run-up have allayed many of those fears.

Moreover, back-to-back strong employment reports also show that the labor market is in better shape than many had feared. Consumers feel fairly positive about the economy right now and this is evident in the consumer spending figures, which grew at a 4.4 percent annual rate during the second quarter and are off to a strong start in the current quarter.”