#Consumer #Confidence #Jumped #Years #October
Key takeaways
- Consumer confidence rose to 108.7 in October, a jump from 99.2 in September, the largest increase since March 2021.
- More people in October said jobs were available, while fewer said jobs were hard to find, which helped push confidence higher.
- Inflation remains a concern for many consumers, although more have indicated they are seeing a decline in grocery prices.
Consumer confidence jumped by the most since 2021 in October, as people feel better about the job market despite continued concerns about rising prices.
The October consumer confidence index jumped to 108.7 from the previous month’s reading of 99.2, the largest increase in the index since March 2021. This rebound comes after the index recorded its largest decline in three years in September.
The report issued by the Conference Board showed that consumers’ view of current business conditions has become positive. The number of survey respondents who expect an economic recession has fallen to its lowest levels since July 2022.
Consumers are optimistic about the job market
Meanwhile, their assessment of the labor market also improved after several months of slow data.
In the survey, more people said jobs were “plentiful” in October, while fewer described them as “hard to get,” with the difference between the two reaching the largest gap in five months, according to Wells Fargo economists.
The survey could indicate that the labor market is still healthy from the perspective of job seekers. A separate report on Tuesday showed job openings declined, but employment rose last month.
Concerns about inflation remain although some consumers see improvement
The consumer survey showed that many people remain concerned about inflation, although price increases have slowed in recent months. The latest reading of Consumer Price Index (CPI) inflation showed that prices rose at an annual rate of 2.4% in September, well below their recent peak of around 9% in the summer of 2022.
Consumers expect inflation to rise by 5.3% over the next 12 months, a slight increase from last month. The report showed that while more respondents cited slower inflation and lower grocery prices this month than in previous months, inflation and prices remain a major concern for consumers.
“The disconnect between low inflation and still low confidence has confounded many forecasters. All the while, consumers continue to report that it is high price levels that they find particularly troubling,” wrote Shannon Seery-Green and Jeremiah Cole, economists at Wells Fargo.
#Consumer #Confidence #Jumped #Years #October
