The consumer confidence index rose by a larger than expected 6.7 percentage points in August. This increase was hyped in an NYT article because of the importance of consumption in the economy.
It is worth noting that most of the rise in the index was attributable to a 10.1 percentage point increase in the expectations index. This index is much more volatile than the current conditions index and has little relationship to spending. Therefore it provides little information about the direction of consumption spending.
Unlike many news organizations, the Prospect has remained staunchly committed to keeping our journalism free and accessible to all. We believe that independent journalism is crucial for a functioning democracy—but quality reporting comes at a cost.
This year, we’re aiming to raise $75,000 to continue delivering the hard-hitting investigative journalism you’ve come to expect from us. Your support helps us maintain our independence and dig deeper into the stories that matter most.
If you value our reporting, please consider making a contribution today. Any amount helps secure our future and ensure we can continue holding power to account.
