Consumer confidence increases as elections approach; job offers go down
Consumers became more optimistic about the U.S. economy ahead of the contentious presidential election, even as job openings hit multi-year lows, according to separate reports released Tuesday.
The Conference Board’s consumer confidence index for October rose more than 11% to a reading of 138, its biggest monthly acceleration since March 2021. Along with that, the board’s expectations index for future conditions jumped nearly 8 %, to a reading of 89.1. that’s a far cry from the sub-80 level that indicates a recession.
Economists surveyed by Dow Jones expected a headline number of 99.5.
“Consumer assessments of current business conditions turned positive,” said Dana Peterson, the board’s chief economist. “Views on current job availability have recovered after several months of weakness, potentially reflecting better labor market data.”
That sentiment was apparently at odds with a Bureau of Labor Statistics report showing that job openings fell to 7.44 million in September, more than 400,000 fewer than the previous month’s downwardly revised level and the lowest since January. of 2021. That figure was also below Wall Street. forecast of 8.0 million.
The drop in vacancies brought the ratio of vacant positions to available workers below 1.1 to 1. By mid-2022, the figure was above 2 to 1.
Although the level of vacancies decreased, hiring increased by 123,000 in the month. Separations changed little, while resignations decreased by 107,000.