U.S. Consumer Confidence Spikes

After two straight months of pandemic-induced declines, consumer confidence in the U.S. shot up beyond 100 for September. The Conference Board Consumer Confidence Index shows a reading of 101.8 (1985=100), up from 86.3 in August. The Present Situation Index – based on consumers’ assessment of current business and labour market conditions – increased from 85.8 to 98.5. The Expectations Index – based on consumers’ short-term outlook for income, business, and labour market conditions – increased from 86.6 in August to 104 in September. Lynn Franco, senior director of economic indicators at the Conference Board, says, “A more favourable view of current business and labour market conditions, coupled with renewed optimism about the short-term outlook, helped spur this month’s rebound in confidence. Consumers also expressed greater optimism about their short-term financial prospects, which may help keep spending from slowing further in the months ahead.”