U.S. consumer confidence rebounded in October after three months of declines in the outlook measure, though households still expected rising prices and planned to curb some spending, The Conference Board said.
The index, based on a 1985 benchmark of 100, reflects consumers’ assessments of current business and labor-market conditions and their near-term outlook for income and those conditions. October’s reading was 7.5 points above September’s revised 84.2; the Board had first reported that month’s result at 81.9.
The Present Situation Index rose 8.6 points to 120.4. The Expectations Index added 6.9 points to 72.6, partly recovering ground after three consecutive monthly declines. The figures show stronger views of current conditions than expectations for the months ahead.
The Conference Board linked October’s improvement to more favorable assessments of business conditions and lower retail gasoline prices. Consumers’ average inflation expectation for the next 12 months edged down but remained at 5.8%, while respondents continued to expect interest rates to rise over that period.
Planned spending was generally lower for services and durable goods, according to the Board. It said elevated prices and persistent inflation likely reduced consumers’ purchasing power and contributed to those plans.
The confidence gains were uneven across groups. On a six-month moving-average basis, confidence rose only among consumers younger than 35 and households earning at least $100,000. Sentiment increased across political affiliations, with a larger gain among Republicans.
Fergus McCormick, senior economist for global indicators at The Conference Board, said confidence “remained on the long-term downward trend that’s persisted over the past few years.”
Toluna conducted the preliminary online survey for The Conference Board from Oct. 1-21. The Board’s next Consumer Confidence Index release is scheduled for Nov. 24 at 10 a.m. ET.
