Consumer confidence increased in September, according to the Conference Board’s consumer confidence index, as some states eased coronavirus restrictions.
The index now stands at 101.8, up from August’s 86.3 and July’s 92.6.
September’s increase comes on the heels of back-to-back decreases in confidence during July and August, as the virus surged through many states.
“Consumer Confidence increased sharply in September…[which signifies] a more favorable view of current business and labor market conditions, coupled with renewed optimism about the short-term outlook, helped spur this month’s rebound in confidence,” said Lynn Franco, senior director of economic indicators at the Conference Board, when releasing the index’s findings.
The consumer confidence numbers are indexed to 1985, and September’s number denotes that confidence is currently surging.
The percentage of consumers claiming business conditions are “good” increased from 16% in August to 18.3% in September, while those claiming business conditions are “bad” decreased from 43.3% in August to 37.4% in September.
Consumers’ assessment of the labor market also improved. The percentage of consumers saying jobs are “plentiful” increased from 21.4% in August to 22.9% in September, while those claiming jobs are “hard to get” decreased from 23.6% in August to 20% in September.
While consumer confidence is on the increase, Franco notes that the level is still below pre-pandemic levels. Consumer confidence in February, before the pandemic hit the nation and forced the economy to shut down, was 130.7. In January, it was 130.4.
