US consumer confidence rebounds in October, improving the outlook for consumer businesses

The Conference Board said Tuesday that its US Consumer Confidence Index rose to 91.7 in October, above September's upwardly revised 84.2 and economists' forecast of 81. The index surveys households about their views of economic conditions.^[1][2]

Confidence rose for the first time in four months as consumers became more upbeat about the job market and business conditions.^[3] Easing gasoline prices also helped, although frustration with the rising cost of living persisted.^[4]

Households that feel more secure about jobs may be more willing to buy nonessential goods and services. Cheaper gasoline also leaves driving households with more money for other purchases. Both channels could support revenue at consumer-facing businesses.^[3][4]

Persistent living-cost pressure limits how much of that improved confidence may turn into additional spending. The demand outlook has improved, but sales growth still depends on room in household budgets.^[4]

Impact

What to watch next

• October 29's US personal income and spending report for September will show the income and spending backdrop entering October; its reporting period precedes this confidence rebound.
• October 29's initial jobless claims report for the week ended October 24 will offer a timely check on layoffs and whether consumers' brighter job outlook has support.