U.S. consumer confidence revived in October, rising back to June levels, the Conference Board said on Tuesday. Its Consumer Confidence Index rose by 7.5 points to 91.7 (1985=100), up from 84.2 in September after a slight upward revision. The survey's preliminary results cover October 1–21, with a cutoff date of October 21.
Source: The Conference Board via PR Newswire
The Present Situation Index, based on consumers' assessment of current business and labour-market conditions, increased by 8.6 points to 120.4. Some 21.4% of consumers said business conditions were “good,” up from 18.8% in September, while 17.8% said they were “bad,” down from 20.0%. On jobs, 26.7% said jobs were “plentiful,” up from 24.3%, and 21.4% said jobs were “hard to get,” unchanged — improving the labour-market differential by 2.4 percentage points to +5.3%.
Source: The Conference Board via PR Newswire
The Expectations Index, based on the short-term outlook for income, business and labour-market conditions, recovered by 6.9 points to 72.6, only partially reversing three consecutive monthly declines. “Consumer confidence advanced in October, driven primarily by improved perceptions of current and expected business conditions,” said Fergus McCormick, Senior Economist, Global Indicators at the Conference Board. He said the recovery was in line with retail gasoline prices easing from September to October, but warned confidence remained on a long-term downward trend, with consumers planning less spending on services and durable goods, likely reflecting higher prices and persistent inflation eroding purchasing power.
Source: The Conference Board via PR Newswire
In write-in responses, consumers continued to express frustration with rising costs, the Conference Board said: references to prices, the high cost of food and groceries, and oil and diesel prices rose in October, while comments about war and conflict eased for a second straight month but remained elevated. Average 12-month inflation expectations declined slightly but stayed elevated at 5.8%, and consumers still expected higher interest rates. Plans to buy autos and homes dipped slightly, and vacation plans eased to 43.3% of consumers planning a trip in the next six months.
Source: The Conference Board via PR Newswire
A separate Dow Jones report carried by Morningstar confirmed the same figures — an index of 91.7 against a Wall Street Journal economist expectation of 81 — and noted the Federal Reserve is meeting on Tuesday and Wednesday to assess whether further interest-rate moves are needed against inflation above its target. For Punjabi-American households and truckers, the diesel-price mentions in the survey underline why the headline rebound has not yet translated into relief at the pump or the grocery store.