According to The Conference Board's most recent analysis, U.S. consumer confidence saw its biggest monthly since March 2021 to 108.7 in October from a revised 99.2 in September. The number clearly above the average estimate of 99.5, indicating a dramatic change in consumer mood.
While noting the importance of the rise, the Conference Board Chief Economist Dana Peterson pointed out that the index "still did not break free from the narrow range that has prevailed over the past two years." Rising to 138.0 from 123.8 in September, the Present Situation Index gauges consumers' opinion of present business and labor circumstances. Reaching 89.1 from 82.8, the Expectations Index—which measures consumers' short-term perspective for income, company, and labor market conditions—also improved.
Peterson ascribed the increase to more favorable opinions on present economic conditions and the job availability. "Views on the current availability of jobs rebounded after several months of weakness, maybe reflecting better labor market data," she said. Regarding future business prospects, consumers were similarly "substantially more optimistic"; their view of future income was equally positive.
