US Consumer Confidence Rises to 91.7 in October as Inflation Worries Persist

American consumer confidence recovered in October after several months of deterioration, according to survey results released Tuesday, October 27, by The Conference Board. Its headline Consumer Confidence Index climbed 7.5 points to 91.7 from a revised September reading of 84.2, reflecting improved assessments of business conditions and employment prospects.

The survey was published at 10 a.m. Eastern time and covered responses collected from October 1 through October 21. The Conference Board's Present Situation Index increased 8.6 points to 120.4, while its Expectations Index rose 6.9 points to 72.6. Although the latter measure improved, it remained considerably weaker than the measure of current conditions, suggesting households were still uneasy about the months ahead.

Consumers reported somewhat better labor-market conditions. The share saying jobs were plentiful increased to 26.7% from 24.3% in September, while the proportion saying jobs were hard to get remained at 21.4%. Expectations for business conditions, employment and household incomes also became less negative. The results indicate a partial recovery in sentiment rather than a uniform improvement across the economy.

High prices continued to weigh on respondents. The Conference Board said consumers repeatedly mentioned the cost of groceries, fuel and other essentials in their written answers. Average inflation expectations for the coming 12 months eased but remained elevated at 5.8%. Respondents also indicated that they planned to spend less on several categories of durable goods and services over the next six months.

The organization's economists associated part of the recovery with a modest easing in retail gasoline prices between September and October. Independent reporting by the Associated Press likewise noted that gasoline had become less expensive over the month, while remaining well above its year-earlier level.

Planned purchases of automobiles and homes slipped slightly on a six-month moving-average basis. Intentions to buy consumer electronics also softened, and the share of respondents planning a vacation over the next six months fell to 43.3%. Those details temper the headline increase: stronger confidence does not necessarily mean households are ready to increase spending.

The monthly index is based on an online survey conducted for The Conference Board by Toluna. It captures how people view current economic conditions and the near-term outlook, not actual retail spending or employment. October's improvement therefore offers a timely reading of household sentiment but cannot by itself establish that economic growth has accelerated.