After two months of significant positive growth, American consumer confidence in October is at its highest observed point since March of this year, despite much volatility.
American consumer confidence is at 52.6 for the month of October, which is up by two points from last months, as measured by the Refinitiv/Ipsos Primary Consumer Sentiment Index. Additionally, as long as the unemployment rate continues to drop, the upward trend in consumer confidence trend is expected to continue, the report said.
“With the unemployment rate dipping down 7.9%, a measure that has declined consecutively for five months, it is not unfeasible to see why people have become more optimistic about their current and future financial situation,” notes Chris Jackson of Ipsos. “More natural volatility should be anticipated as there are many factors that go into this metric, but as long as the unemployment rate continues to drop, we can expect to see this upward trend to continue.”
The PCSI Current Condition Index is up 1.7 points from last month and now sits at 42.4. The index has been trending upwards since May of this year, but is still below the level it reached in October 2019 (55.0). The PCSI Expectations Index, currently at 66.1, is up 2.0 points from last month. The metric has fully recovered from a nearly five-point drop in August. Despite an initial pandemic-related drop, the Index is now one point higher than it was at this point a year ago (65.1).