US Conference Board Consumer Confidence Index rose sharply from 99.2 to 108.7 in October, significantly surpassing the expected 98.9 and marking the highest monthly gain since March 2021. Although this increase keeps the index within its two-year range, it reflects a notable boost in consumer sentiment driven by improving views on the economy and labor market.
Present Situation Index, a gauge of consumers’ perceptions of current economic conditions, climbed 14.2 points to 138.0, highlighting a strong rebound in how Americans view the job market and business environment.
Additionally, Expectations Index rose 6.3 points to 89.1, moving well above the recession-warning threshold of 80, indicating that consumers are increasingly positive about future economic conditions.
Dana M. Peterson, Chief Economist at The Conference Board, noted that October’s data saw improvements across all five components of the index. Consumers reported a more positive assessment of business conditions, reflecting recent labor market strength. Views on current job availability also improved, suggesting renewed optimism in employment prospects. Notably, consumers expressed greater optimism about future business conditions and income expectations, and for the first time since July 2023, showed cautious optimism regarding future job availability.
