It’s Not Just Floridians – U.S. Confidence Is Also Up
The Sept. Consumer Confidence Index rose above 100 (101.8) from last month’s 86.3, but the component measuring future expectations rose the most – from 86.6 to 104.0.
BOSTON – After a drop in August, September’s Consumer Confidence Index soared higher in September, rising 15.5 points – from August’s 86.3 to 101.8 this month.
One component of the full index, the Present Situation Index – consumers’ assessment of current business and labor market conditions – increased from 85.8 to 98.5. The Expectations Index – consumers’ short-term outlook for income, business and labor market conditions – increased from 86.6 in August to 104.0.
“Consumer confidence increased sharply in September, after back-to-back monthly declines, but remains below pre-pandemic levels,” says Lynn Franco, senior director of economic indicators at The Conference Board. “A more favorable view of current business and labor market conditions, coupled with renewed optimism about the short-term outlook, helped spur this month’s rebound in confidence.
“Consumers also expressed greater optimism about their short-term financial prospects, which may help keep spending from slowing further in the months ahead.”
The percentage of consumers claiming business conditions are “good” increased from 16.0% to 18.3% this month, while those claiming business conditions are “bad” decreased from 43.3% to 37.4%.
Consumers’ assessment of the labor market also improved. The percentage saying jobs are “plentiful” increased from 21.4% to 22.9%, while those claiming jobs are “hard to get” decreased from 23.6% to 20.0%.
Consumers were also more optimistic about the nation’s six-month outlook. The percentage expecting business conditions to improve over the next six months increased from 29.8% to 37.1%, while those expecting business conditions to worsen decreased from 20.7% to 15.8%.
Consumers were also more upbeat about the labor market. The proportion expecting more jobs in the months ahead increased from 29.9% to 33.1%, while those anticipating fewer jobs decreased from 21.2% to 15.6%. Regarding their short-term income, the percentage of consumers expecting an increase improved from 13.0% to 17.5%, while the proportion expecting a decrease declined from 16.0% to 12.6%.
The monthly Consumer Confidence Survey is conducted for The Conference Board by Nielsen. The cutoff date for the preliminary results was Sept. 18.
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