US consumer confidence surges in Oct

WASHINGTON, D.C. — US consumer confidence recorded its largest monthly gain in over three-and-a-half years in October but remains stuck below pre-pandemic levels, according to a survey published on Tuesday, a week before the US presidential election.

The Conference Board’s consumer confidence index jumped sharply to 108.7 in October, up from a revised 99.2 last month.

This was sharply above market expectations, according to Briefing.com, and provides Democratic Vice President Kamala Harris with some good economic news ahead of next week’s presidential election, in which she faces former Republican president Donald Trump.

The health of the world’s largest economy has remained a priority for voters ahead of the Nov. 5 election, with consumers concerned about the effect that an inflationary period in 2022 and 2023 has had on the cost of everyday goods like food.

“Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years,” Conference Board chief economist Dana Peterson said in a statement, adding that all five components of the index had improved.

“October’s increase in confidence was broad-based across all age groups and most income groups,” she added, noting that consumers between the ages of 35 and 54 saw the highest rise in confidence.

Over the past six months, homeowners under 35 and those earning over $100,000 have remained the most upbeat.

“Consumer confidence exploded in this latest survey,” economists at High Frequency Economics wrote in a note to clients.

They said that the Conference Board’s survey was “a much more upbeat statement about the condition of the economy” than that offered by the Fed’s (Federal Reserve) own report on economic conditions, known as the Beige Book.

“Equities should be impressed by the improvement in confidence,” they added.