U.S. consumer confidence jumps to 91.7 in October, well above forecasts

What happened

The Conference Board's Consumer Confidence Index rose 7.5 points to 91.7 in October, up from an upwardly revised 84.2 in September and far above economists' forecast of about 80-81. The Present Situation Index jumped 8.6 points to 120.4 and the Expectations Index recovered 6.9 points to 72.6, only partly reversing three straight monthly declines. The survey, conducted October 1-21, showed improved appraisals of current and expected business conditions, alongside better income prospects (18.7% expected income gains, up from 18.1%; 12.0% expected declines, down from 14.9%).

Who’s affected

• Broad U.S. equities (S&P 500, Nasdaq) — a stronger consumer read supports the demand outlook; consumer discretionary and retail names including TJX, Amazon and other watchlist-adjacent retailers — confidence is a leading read on spending; homebuilders and housing-related stocks — confidence and present-situation appraisals feed housing demand; rate-sensitive growth stocks — a firmer consumer complicates the Fed's calculus ahead of Wednesday's decision

Sources

reuters.comprnewswire.comseekingalpha.com