United States: Consumer confidence rebounds to highest level in seven years in October
October 28, 2014
The Conference Board consumer confidence index jumped to 94.5 points in October from a revised 89.0 points in September (previously reported: 86.0 points). The reading contrasted market expectations of a fall to 87.0 points, and marked the highest result in seven years.
October’s increase in confidence was driven by a steep rise in consumers’ expectations regarding business conditions over the next six months and their outlook on the future job market. Consumers had only slightly more positive assessments of current economic conditions.
The director of the Board explained that, “consumer confidence, which had declined in September, rebounded in October. Looking ahead, consumers have regained confidence in the short-term outlook for the economy and labor market, and are more optimistic about their future earnings potential. With the holiday season around the corner, this boost in confidence should be a welcome sign for retailers.”
Author: Carl Kelly, Economist