The Conference Board Consumer Confidence Index (CCI) soared 15.5 points in September and was revised higher for August. The Index now stands at 101.8 (1985=100), up from an upwardly revised reading of 86.3.
The Present Situation Index — a gauge which is based on consumers’ assessment of current business and labor market conditions — increased from 85.8 to 98.5. The Expectations Index — based on consumers’ short-term outlook for income, business, and labor market conditions — increased from 86.6 in August to 104.0 this month.
“Consumer Confidence increased sharply in September, after back-to-back monthly declines, but remains below pre-pandemic levels,” said 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.”
Consumers’ views of current conditions rebounded strongly in September. The percentage of consumers claiming business conditions are “good” rose from 16.0% to 18.3%, and those claiming business conditions are “bad” fell from 43.3% to 37.4%.
Consumers’ views of the labor market also improved from last month. The percentage of consumers saying jobs are “plentiful” rose from 21.4% to 22.9%, and those claiming jobs are “hard to get” fell from 23.6% to 20.0%.
The Consumer Confidence Survey (CCI) is based on a probability-design random sample and is conducted for The Conference Board by Nielsen. The cutoff date for the preliminary results was September 18.