Americans are feeling more confident about the economy as Election Day nears, according to a new survey by The Conference Board. The Consumer Confidence Index jumped to 108.7 in October from 99.2 in September, marking the biggest monthly gain since March 2021. The survey found that Americans are planning to purchase big-ticket items in the near future, influenced by recent stock market gains and lower interest rates.
The proportion of consumers anticipating a recession over the next 12 months and those believing the economy is already in a recession dropped to their lowest levels since the questions were first introduced in July 2022.
Rising confidence ahead of election
Dana Peterson, The Conference Board’s chief economist, stated, “October’s increase in confidence was broad-based across all age groups and most income groups.
Views on the current availability of jobs rebounded after several months of weakness, potentially reflecting better labor market data.”
The White House acknowledged the survey, with Lael Brainard, President Biden’s top economic adviser, emphasizing positive elements such as “good real income growth, strong employment, and inflation that is back down to the level before the pandemic.”
However, a separate report released Tuesday indicated a slight loss of momentum in the labor market recently, with job openings decreasing. The October jobs report, set to be released on Friday, may reflect the impacts of recent hurricanes and labor strikes. Robert Frick, corporate economist at Navy Federal Credit Union, noted, “Consumer confidence rose mainly due to optimism about the labor market, which will be important to remember when the jobs report comes out Friday.”
With the election imminent, Americans’ economic outlook appears to be improving, partly driven by a stable job market and positive economic trends.
The upcoming jobs report could further influence consumer moods as the nation heads to the polls.
