CONSUMER CONFIDENCE SPIKES TO A 7-YEAR HIGH

Advertisement

shopping electronics store computers selfie

REUTERS/Thomas Peter

Consumer confidence is at a 7-year high!

The Conference Board's index of confidence unexpectedly jumped to 94.5 in October from 89.0 in September. This is the highest level since October 2007.

This was much higher than the 87.0 level expected by economists.

Advertisement

The past month has been highlighted by falling gas prices, the positive effects of which may have offset uncertainties surround a volatile stock market, the spread of Ebola, and all of the other things that are going wrong in the world.

"A more favorable assessment of the current job market and business conditions contributed to the improvement in consumers' view of the present situation," said Lynn Franco of the Conference Board. "Looking ahead, consumers have regained confidence in the short-term outlook for the economy and labor market, and are more optimistic about their future earnings potential. With the holiday season around the corner, this boost in confidence should be a welcome sign for retailers."

Shape Up Your Future 16th & 17th September 2021
  • 15+ Knowledge Sessions
  • 30+ Industry leaders
Watch Live
Meet Our Speakers
Nikhil Malhotra
Nikhil Malhotra
Dan Schawbel
Dan Schawbel
Ronnie Screwvala
Ronnie Screwvala
Dr. KV Subramanian
Dr. KV Subramanian
Benjamin Pring
Benjamin Pring
Sanjeev Bikhchandani
Sanjeev Bikhchandani

"We remain a bit nervous about the risk of a lagged hit from the drop in stock prices, but the net dip from the peak is now small, and gas prices are still falling," Pantheon Macroeconomics' Ian Shepherdson said. "Holiday shopping will be strong."

Advertisement