The Conference Board released some good news Tuesday morning for October’s consumer confidence, unlike the durable goods report earlier in the morning.
The Consumer Confidence Index had dropped in September, but it made a huge rebound in October. The index reads at 94.5, up from 89.0 in September. The Present Situation Index increased to 93.7 from 93.0, while the Expectations Index increased sharply to 95.0 from 86.4 in September.
Consumers’ appraisal of current conditions was more favorable in October than in September. The reading for business conditions was mixed. The proportion saying conditions are “good” increased to 24.5% from 24.2%, while those claiming business conditions are “bad” also increased slightly to 21.7% from 21.2%.
The consumer assessment of the job market improved moderately, with those saying jobs are “plentiful” increasing marginally to 16.5% from 16.3% and those claiming jobs are “hard to get” declining slightly to 29.1% from 29.4%.
Lynn Franco, Director of Economic Indicators at the Conference Board, said:
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. 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.
Optimism for future conditions had declined considerably in September but made a marked improvement in October. The percentage of consumers expecting business conditions to improve over the next six months increased to 19.6% from 19.0%, while those expecting business conditions to worsen fell to 9.3% from 11.4%.
The outlook for the labor market also improved. Those anticipating more jobs in the months ahead increased to 16.8% from 16.0%, while those anticipating fewer jobs fell to 13.9% from 16.9%. The proportion of consumers expecting growth in their incomes rose to 17.7% in October from 16.9% in September, while the proportion expecting a drop in income fell to 11.6% from 13.4%.
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