The consumer confidence index rose to 137.9 in October from a revised 135.3 in September, originally reported at 138.4, the Conference Board reported on Tuesday. The index stands at an 18-year high level.
Economists surveyed by IFR Markets had predicted a reading of 136.0 for October.
The index stands at an 18-year high level.
“Consumer Confidence increased in October, following a modest gain in September, and remains at levels last seen in the fall of 2000 (September 2000, 142.5),” said Lynn Franco, senior director at the board.
The present situation index increased to 172.8 in October from a revised 169.4 originally reported at 172.8 while the expectations index rose to 114.6 from a revised 112.5 in September originally reported as 115.3.
Consumers’ assessment of current conditions improved in October. Those stating business conditions are “good” increased to 40.5% from 39.9% while those saying business conditions are “bad” slipped to 9.2% from 9.6%.
Consumers’ assessment of the labor market was also more favorable. Those claiming jobs are “plentiful” increased to 45.9% from 44.1% while those claiming jobs are “hard to get” decreased to 13.2% from 14.1%.
Consumers’ optimism about the short-term future increased. The percentage of consumers expecting business conditions will improve over the next six months increased to 26.3% from 25.8% while those expecting business conditions will worsen declined to 7.4% from 8.3%.
However, consumers’ outlook for the labor market was somewhat mixed. The proportion expecting more jobs in the months ahead decreased to 21.9% from 22.1%, but those anticipating fewer jobs also decreased, to 10.5% from 11.4%.
Regarding short-term income prospects, the percentage of consumers expecting an improvement rose to 24.7% from 22.5%, but the proportion expecting a decrease increased to 8.5% from 7.6%.
“Consumers’ assessment of present-day conditions remains quite positive, primarily due to strong employment growth,” Franco said. “The expectations index posted another gain in October, suggesting that consumers do not foresee the economy losing steam anytime soon. Rather, they expect the strong pace of growth to carry over into early 2019.”
The monthly report uses 1985 as a 100 baseline and is based on a probability-design random sample conducted by Nielsen.
