U.S. consumer confidence index rises in October as fuel price pressure eases
U.S. households show a firmer mood in October as lower gasoline prices provide some relief after a weak September reading. The improvement comes even as consumers continue to voice concern about the broader cost of living, especially food, groceries, and fuel-related expenses.
Highlights
- Conference Board consumer confidence index rose to 91.7 in October from 84.2 in September, beating economists' 81 forecast.
- Fuel price easing from September to October supported the rebound in sentiment, according to the Conference Board's Fergus McCormick.
- Despite improved headline confidence, consumers continued citing concerns about high costs for food, groceries, oil, and diesel in October responses.
October survey shows rebound in sentiment
As reported by Reuters, citing the Conference Board, its consumer confidence index increases to 91.7 in October from an upwardly revised 84.2 in September.That is stronger than economists' expectations in a Reuters poll, which had forecast a reading of 81 after a previously reported 81.9 in September.
Fergus McCormick, senior economist for global indicators at the Conference Board, says the recovery is in line with retail gasoline prices easing from September to October.
Cost pressures still weigh on consumers
Despite the gain in headline confidence, consumer sentiment remains constrained by frustration over rising everyday expenses.McCormick says October write-in responses continue to highlight concern about prices, with references to the high cost of food and groceries, as well as oil and diesel prices, increasing.
In our earlier article on the conflict-driven surge in oil shipping costs, we explained how soaring tanker and insurance rates were becoming a major component of crude prices and feeding through to higher gasoline costs. We also noted that these transport-driven increases can spill over into everyday expenses such as food and retail goods, adding to the inflation pressures consumers feel.