Consumer confidence index rose in August despite lingering concerns

Consumer confidence for August has turned upward, reversing a slide of the past two months, according to a report from RBC Capital Markets in Toronto. The RBC CASH Index, a measurement of consumer sentiment and household spending habits, was measured at 37.5, up 15.1 points from where it stood a month ago. While the index has experienced a volatile summer, the August reading showed improvement in all four index subcategories, which evaluate consumer views on current conditions and expectations, as well as their overall confidence with regard to investing and job security. Despite the overall positive tone of the latest data, the subcategory levels suggested lingering consumer concerns over the job market, according to Rom Porcelli, an RBC Capital Markets economist. “The RBC index for August showed a strong bounce in overall confidence, but as the relatively low readings in the subindices show, the economic recovery continues to face a number of head winds, particularly in the job market,” he said in a statement. “The RBC Jobs Index remains at a relatively low level and suggests a continued difficult labor backdrop to any recovery.” Despite a July stock market rally that saw the Standard & Poor’s 500 stock index gain 7.4% for the month, consumers remain keenly aware of a national unemployment rate that is closing in on 10%, which is nearly double where it was a year ago. The RBC Jobs Index rose to 53.2 for August, up from 50.5 in July, but the index is well below the 85.8 recorded in August 2008. The biggest negative influence continues to be job loss, according to the report. The RBC Investment Index saw a 13-point increase to 43.9, which is the highest level since the end of 2007. The RBC Current Conditions Index gained 13.3 points to 36.6. The RBC Expectations Index for August was up 24.3 points to 29.1, illustrating the extreme volatility that remains in the area of consumer expectations. The RBC indexes which are benchmarked to a baseline of 100, are a monthly national survey of consumer attitudes. This month’s findings were based on a nationwide sampling of 1,000 adults polled from July 30 to Aug. 3.