The Conference Board Consumer Confidence Index® rose by 7.5 points to 91.7 (1985=100) in October, up from 84.2 in September (a slight upward revision). The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—increased by 8.6 points to 120.4. The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—recovered by 6.9 points to 72.6, only partially reversing three consecutive monthly declines. The survey period for this month’s preliminary results was October 1-21. “Consumer confidence advanced in October, driven primarily by improved perceptions of current and expected business conditions,” said Fergus McCormick, Senior Economist, Global Indicators, The Conference Board. “The recovery was in line with retail gasoline prices easing from September to October. Yet, despite the increase in October, consumer confidence remained on the long-term downward trend that’s persisted over the past few years. Consumers planned less spending on services and durable goods over the next six months. This likely reflected higher price levels and persistent inflation, which eroded consumers’ purchasing power.” McCormick continued: “Among write-in responses in October, consumers continued to express frustration with rising costs. References to prices, the high cost of food and groceries, and oil and diesel prices rose. Comments about war and conflict eased for a second straight month but remained elevated. Mentions of jobs and employment as an area of concern also ticked up, though to a lesser extent.” The Present Situation Index rallied in October. Net views of current business conditions—the share saying conditions are “good” versus “bad”—increased by 4.8 percentage points to 3.6% following a notably negative reading last month. Perceptions of current employment conditions were moderately more favorable, with the labor market differential—the share of consumers saying jobs are “plentiful” minus the share saying jobs are “hard to get”—improving by 2.4 ppts to +5.3%. The Expectations Index was less pessimistic in October as all three of its components saw improvements. Net expectations for business conditions became less morose, rising by 5.7 ppts to –3.0%. Net expectations for the labor market also became slightly less pessimistic, increasing by 1.8 ppts to –11.1%. Consumers still expected their household incomes to rise over the next six months. Net expectations for household income improved by 3.5 ppts to +6.7%.