The Conference Board Consumer Confidence Index, which had decreased in September, rebounded in October. The index now stands at 94.5 (1985=100), up from 89.0 in September. The Present Situation Index edged up from 93.0 to 93.7, while the Expectations Index increased sharply to 95.0 from 86.4 in September.
Consumers’ appraisal of current conditions was moderately more favorable in October than in September. Their view of business conditions was mixed. While the proportion saying conditions are “good” inched up from 24.2% to 24.5%, those claiming business conditions are “bad” also increased slightly, from 21.2% to 21.7%.
Consumers’ assessment of the job market improved moderately, with the proportion stating jobs are “plentiful” increasing marginally from 16.3% to 16.5%, and those claiming jobs are “hard to get” declining slightly from 29.4% to 29.1%.
Consumers’ optimism, which had declined considerably in September, improved in October. The percentage of consumers expecting business conditions to improve over the next six months increased from 19.0% to 19.6%, while those expecting business conditions to worsen fell from 11.4% to 9.3%.
Consumers’ outlook for the labor market also improved markedly. Those anticipating more jobs in the months ahead increased to 16.8% from 16.0%, while those anticipating fewer jobs fell from 16.9% to 13.9%. The proportion of consumers expecting growth in their incomes rose from 16.9% in September to 17.7% in October, while the proportion expecting a drop in income fell from 13.4% to 11.6%.
“Consumer confidence, which had declined in September, rebounded in October. A more favorable assessment of the current job market and business conditions contributed to the improvement in consumers’ view of the present situation,” said Lynn Franco, director of economic indicators at The Conference Board. “Looking ahead, consumers have regained confidence in the short-term outlook for the economy and labor market and are more optimistic about their future earnings potential. With the holiday season around the corner, this boost in confidence should be a welcome sign for retailers.”
The monthly Consumer Confidence Survey, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a leading global provider of information and analytics around what consumers buy and watch.
The cutoff date for the preliminary results was Oct. 16.