Consumer confidence hits 9-year high in September

Consumer confidence rose for the second straight month in September to reach a nine-year, post-recession high.

The Index now stands at 104.1, up from 101.8 in August.

“Consumer confidence increased in September for a second consecutive month and is now at its highest level since the recession,” said Lynn Franco, director of economic indicators at The Conference Board. “Consumers’ assessment of present-day conditions improved, primarily the result of a more positive view of the labor market. Looking ahead, consumers are more upbeat about the short-term employment outlook, but somewhat neutral about business conditions and income prospects. Overall, consumers continue to rate current conditions favorably and foresee moderate economic expansion in the months ahead.” 

The Present Situation Index rose from 125.3 to 128.5, even though those stating business conditions are “good” decreased from 30.3% to 27.4%. However, those saying business conditions are “bad” declined from 18.2% to 16.2%. As for the labor market, those stating jobs were “plentiful” increased from 26.8% to 27.9%, while those claiming jobs are “hard to get” declined from 22.8% to 21.6%.

Meanwhile, the Expectations Index also improved from 86.1 last month to 87.8. The percentage of consumers expecting business conditions to improve over the next six months decreased from 17.6% to 16.5%. However, those expecting business conditions to worsen also declined from 11.4% to 10.2%. The proportion expecting more jobs in the months ahead increased from 14.4% to 15.1%, while those anticipating fewer jobs declined from 17.5% to 17.0%. The percentage of consumers expecting their incomes to increase declined from 18.5% to 17.1%. However, the proportion expecting a decline decreased from 11.0% to 10.3%.