Consumer Confidence Increased in October to Highest Level in 18 Years

The Conference Board Consumer Confidence Index increased 2.6 points to 137.9 in October. This is the highest reading since September 2000. The Present Situation Index increased 3.4 points to 172.8. The Expectations Index rose 2.1 points to 114.6.

“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 of Economic Indicators at The Conference Board. “Consumers’ assessment of present-day conditions remains quite positive, primarily due to strong employment growth. 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.”

Consumers’ labor market outlook was mixed in October. The percentage of consumers expecting more jobs in the coming months declined 0.2 point to 21.9 percent, while the share of those anticipating fewer jobs also decreased, falling 0.9 point to 10.5 percent. Income expectations increased, as 24.7 percent of consumers expected their incomes to increase in coming months. The proportion expecting a decline increased from 7.6 percent to 8.5 percent.

Read the Conference Board release.

About Jack McCabe

Jack McCabe is a research associate in the Economic Policy and Research group at the ABA.
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