RBC Cash Index– Confidence Up in AUG

Consumer confidence rebounds despite negative conditions…

According to an August 2007 RBC Cash Index that measured 1,003 Americans, recent housing woes have not stopped U. S. consumer confidence. In fact, the downward slide for most of 2007 has rebounded in spite of a volatile stock market, recent increases in the the jobless rate, poor July retail sales and consumer pessimism in June and July. Strong gains were also made in consumer future expectations, investments and job security.

The survey, which has been in existence since 2002, is released at the end of the first, full week of each month. The findings are based on weekly telephone interviews provided by Ipsos Public Affairs, a survey-based research company with a margin of error of plus or minus 3.1% and is benchmarked to a baseline of 100. The RBC Cash Index was 89.3 for August compared to 76.1 in July and is the highest level since March.

“Consumer confidence rebounded this month, likely supported by ongoing tightness in the jobs market and declines in both the price of gasoline and mortgage rates,” said T. J. Marta, Economic and Fixed Income Strategist for RBC Capital Markets. “However, the rise in the investment index might prove short-lived, if current market volatility persist.”

The RBC CASH Index is a monthly national survey of consumer attitudes on the current and future state of local economies, personal finance situations, savings and confidence to make large investments. The Index is composed of four sub-indices: RBC Current Conditions Index; RBC Expectations Index; RBC Investment Index; and, RBC Jobs Index.

See a list of past, current and future RBC Cash Index releases >>>