The ConferenceBoard consumer confidence index increased in September for the second consecutive month. Index was placed at 108.0 (1985=100), above the 103.August 6.
The Current Situation Index, based on consumers’ assessment of current business and labor conditions, rose to 149.6 since 145.3 last month. The expectations index, based on consumers’ short-term outlook on income, business and labor market conditions, increased to 80.3 from 75.8.
“Consumer confidence improved in September for the second consecutive month, supported in particular by employment, wages and the decline in gasoline prices,” said Lynn Franco, senior director of economic indicators at The Conference Board.
“The Current Situation Index increased again, after falling from April to July. The Expectations Index also improved from the lows of the summer, but the risks of recession persist. now at its lowest level since the beginning of the year” Franco added.
The Conference Board analysis indicates that purchase intentions were mixed, with intentions to buy expensive cars and appliances, while home purchase intentions fell.
“The latter undoubtedly reflects the increase in mortgage rates and a cooler real estate market. Looking ahead, improving confidence may bode well for consumer spending in the final months of 2022, but inflation and price hikes of interest rates continue to be strong obstacles to growth in the short term“Franco explained.
The Conference Board points out that consumers’ assessment of current business conditions was more favorable in September:
– The 20.8% of consumers said that business conditions were “good”, compared to 19.0%.
– The 21.2% of consumers said that the commercial conditions were “bad”, compared to 22.6%.
Consumers’ evaluation of the labor market improved:
– The 49.4% of consumers said jobs were “plenty of Dantes”, in front of the 47.6%.
– The 11. 4% of consumers said jobs were “hard to get”, a little less than the .6%.
Consumers were more positive about the outlook for short-term (6-month) business conditions in September:
– The 19.3% expect business conditions to improve, compared to 17.3 %.
– The 21.0% expect business conditions to worsen, vs. 21.7%.
Consumers were more optimistic about the outlook for the labor market in the short term:
– The 17.5% expect more jobs to become available, compared to 17.1%.
–The 17.7% expect fewer jobs, compared to 19.6%.
– Regarding short-term financial perspectives:
– On 18.4% of consumers expect their income to increase, compared to 16.6%.
– On the contrary, the 14.3% expect their income to decrease, compared to 13.9%.
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