Consumer confidence jumped to its highest level in seven months in September as Americans were more optimistic about the job market and income prospects, a private sector report showed on Tuesday (Sept. 25).
Reuters reported that the Conference Board, an industry group, said its index of consumer attitudes rose to 70.3 from an upwardly revised 61.3 in August. It was the highest level since February and topped economists’ expectations for 63, according to a Reuters poll.
August was originally reported as 60.6.
“Despite continuing economic uncertainty, consumers are slightly more optimistic than they have been in several months,” said Lynn Franco, director of The Conference Board Consumer Research Center, said in a statement.
The expectations index climbed to 83.7 from 71.1, while the present situation index gained to 50.2 from 46.5.
Consumers’ labor market assessment improved. The “jobs hard to get” index slipped to 39.9% from 40.6% the month before, while the “jobs plentiful” index rose to 8.3% from 7.2%.
Looking six months ahead, 16.3% expected income increases, up from 16%, while 14.1% anticipated decreases, down from 16.7%.
Consumers also felt better about price increases with expectations for inflation in the coming 12 months down to 5.8% from 6%.