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WASHINGTON — American consumers are feeling quite a bit more confident this month as Election Day approaches, a business research group says.
The Conference Board said Tuesday that its consumer confidence index jumped to 108.7 in October from 99.2 in September. It was the biggest monthly gain since March of 2021. Analysts forecast a more modest reading of 99.3.
The consumer confidence index measures both Americans’ assessment of current economic conditions and their outlook for the next six months.
“In October’s reading, all five components of the Index improved. Consumers’ assessments of current business conditions turned positive. Views on the current availability of jobs rebounded after several months of weakness, potentially reflecting better labor market data. Compared to last month, consumers were substantially more optimistic about future business conditions and remained positive about future income. Also, for the first time since July 2023, they showed some cautious optimism about future job availability,” said Dana M. Peterson, chief economist at The Conference Board.
The measure of Americans’ short-term expectations for income, business and the job market jumped to 89.1. The Conference Board says a reading under 80 can signal a potential recession in the near future.
The Conference Board reported Tuesday that consumers’ view of current conditions climbed 14.2 points to 138.
“Confidence rose sharpest for consumers aged 35 to 54. On a six-month moving average basis, householders aged under 35 and those earning over $100K remained the most confident,” Peterson said.
Consumer spending accounts for nearly 70% of U.S. economic activity and is closely watched by economists for signs how the American consumer is feeling.
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