U.S. consumer confidence improved in October as gasoline prices retreated from September’s level, but households continued to express concern about the cost of living and the broader economy.
The Conference Board said Tuesday that its consumer confidence index increased 7.5 points, reaching 91.7 from 84.2 in September. The prior month’s reading had been the weakest in the organization’s survey since April 2014 and was lower than the trough recorded during the pandemic.
The October results cover responses collected from Oct. 1 through Oct. 21. Both major components of the index rose. The measure of how consumers viewed current economic conditions climbed 6.9 points to 72.6, while the gauge of their expectations for the next several months advanced 8.6 points to 120.4.
“The recovery was in line with retail gasoline prices easing from September to October,” said Fergus McCormick, a senior economist for The Conference Board.
Gasoline prices were lower than a month earlier but remained well above their level a year ago. AAA reported that regular gasoline averaged $4.27 per gallon in the United States on Tuesday, down from $4.48 a month earlier. The comparable average last year was $3.05 per gallon.
| Indicator | September | October | Change |
|---|---|---|---|
| Consumer confidence | 84.2 | 91.7 | +7.5 points |
| Present situation | 65.7 | 72.6 | +6.9 points |
| Short-term outlook | 111.8 | 120.4 | +8.6 points |
Despite the monthly improvement, McCormick said confidence remained on a longer-term decline. Written responses in the survey were broadly pessimistic, with respondents frequently mentioning the prices of energy, goods and services. The results indicate that a modest fall in gasoline costs did not eliminate wider affordability concerns for households.
Inflation remains a pressure point
The confidence report followed government data showing that consumer prices continued to accelerate in September. The Consumer Price Index, a measure of what households pay for a broad basket of goods and services, rose 3.7% from a year earlier, up from 3.4% in August. On a monthly basis, prices increased 0.6% from August to September, the largest monthly gain in five months.
The combination of elevated prices and concerns about the economy is arriving shortly before the Nov. 3 midterm elections. The Conference Board’s survey did not measure how respondents planned to vote, but its results capture the household pressures that have made affordability a central issue during the campaign. More than five years of elevated inflation have continued to shape consumers’ views even as the October confidence index recovered from its September low.
- Confidence: The index rose to 91.7 in October from 84.2 in September.
- Gasoline: The AAA average fell to $4.27 per gallon from $4.48 a month earlier, but remained above the $3.05 average recorded a year earlier.
- Inflation: Consumer prices were up 3.7% year over year in September, according to the Labor Department.
