In October, consumer confidence rises for the first time in three months.


In October, consumer confidence rises for the first time in three months.

According to the Conference Board, the Consumer Confidence Index rose for the first time in three months in October, rising to 113.8 from 109.8 in September.

The Present Situation Index improved to 147.4 from 144.3 in September, while the Expectations Index rose to 91.3 from 86.7.

In October, #ConsumerConfidence increased 4 points to 113.8 (1985=100), the first gain in three months. Consumers’ assessments of current conditions and expectations for the next six months improved when the #Delta surge subsided. In October, consumers’ perceptions of business conditions were mixed, with 18.6 percent believing things were “excellent,” down from 19.1 percent in September, and 24.9 percent believing conditions were “poor,” down from 25.3 percent the previous month.

Consumers have a slightly more positive opinion of the labor market, with 55.6 percent believing it is “abundant,” down from 56.5 percent the previous month. In addition, 10.6% of consumers think jobs are “difficult to come by,” down from 13% last year.

Short-term business predictions were mixed, with 24.3 percent expecting the economy to strengthen in the next six months, up from 21.7 percent. However, 21.1 percent of respondents, up from 17.6 percent, expect the situation would deteriorate.

Consumers’ short-term labor market expectations have improved slightly, with 25.4 percent expecting more employment in the coming months, up from 21.3 percent. Only 18.3 percent foresee employment losses, down from 19.9 percent last year.

Consumers are more positive about their short-term financial prospects, with 18.7% expecting an increase in their income, up from 16.9%. Consumers who thought their incomes will fall remained unchanged at 11.3 percent in October, compared to 11.4 percent in September.

“Consumer confidence increased in October, reversing a three-month downward trend as concerns about the Delta variation spread abated,” according to Lynn Franco, Senior Director of Economic Indicators at The Conference Board.

“While short-term inflation fears reached a 13-year high, the impact on confidence was minimal.” In October, the percentage of consumers wanting to buy a home, a car, or a large appliance all climbed, indicating that consumer spending will continue to sustain economic growth through the fourth quarter of 2021,” Franco said.


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