Consumer Confidence Increases in October after Three Consecutive Months of Declines

The Conference Board, a non-partisan, not-for-profit think tank founded in 1916, released today (10-26-21) their Consumer Confidence Index® (CCI) for October 2021. The CCI increased in October, following decreases in August July and June. The Index now stands at 113.8 (1985=100), up from 109.8 in September.

The Present Situation Index — based on consumers’ assessment of current business and labor market conditions — rose to 147.4 from 144.3 last month.

The Expectations Index — based on consumers’ short-term outlook for income, business, and labor market conditions — improved to 91.3 from 86.7.

In remarks prepared for the release of this month’s CCI, Lynn Franco, Senior Director of Economic Indicators at The Conference Board said, “Consumer confidence improved in October, reversing a three-month downward trend as concerns about the spread of the Delta variant eased. While short-term inflation concerns rose to a 13-year high, the impact on confidence was muted. The proportion of consumers planning to purchase homes, automobiles, and major appliances all increased in October — a sign that consumer spending will continue to support economic growth through the final months of 2021. Likewise, nearly half of respondents (47.6%) said they intend to take a vacation within the next six months — the highest level since February 2020, a reflection of the ongoing resurgence in consumers’ willingness to travel and spend on in-person services.”