The Consumer Confidence Index advanced in October and now stands at 81.1 (1985=100) compared to 77.0 in September, according to a Conference Board report released last week. The Expectations Index rose to 90.7 from 88.5 in September and the Present Situation Index increased to 66.8 in October from 59.7 the previous month. "After declining for five consecutive months, the Present Situation Index reversed course in October," said Lynn Franco, director of the Conference Board's Consumer Research Center. "A more favorable job market was a major factor in the turnaround. And, the belief that this trend will continue has boosted expectations. With the holiday season around the corner, this improvement in consumers' spirits is a good omen for upcoming retail sales."
Consumers' appraisal of present-day conditions ended a five-month decline in October, with those reporting jobs as "hard to get" declining to 33.8 percent from 35.1 percent. Those claiming jobs are "plentiful" rose to 11.8 percent in October from 9.9 percent. Consumers' assessment of current business conditions also improved, with families rating conditions as "good" increasing to 17.2 percent, up from 16.2 percent. Those claiming conditions were "bad" fell to 28.4 percent from 29.5 percent. Consumers' short-term outlook and the employment outlook also improved in October, according to the report.