US Consumer Confidence Index Exceeds Expectations

For the Fourth Consecutive Month

Data released by the Conference Board on Tuesday showed that the US Consumer Confidence Index data for August was positive, with the index reading better than market expectations for the fourth consecutive month. According to the released data, the US Consumer Confidence Index recorded 103.3 points this month, which is better than expectations that the index would record around 100.9 points, noting that the previous reading of the US Consumer Confidence Index recorded around 100.3 points during last July, and was revised positively to 101.9 points. It is worth noting that the US Consumer Confidence Index strongly affects financial markets, whether the stock market or bonds, as consumer spending represents two-thirds of economic activity. Therefore, if the consumer is not confident in economic activity, he will not buy goods, and therefore confidence affects consumer spending, which naturally affects economic growth. As for stock markets, strong economic growth is reflected in improved corporate profits and higher stock prices.