The Conference Board's consumer confidence index rose 7.5 points to 91.7 in October from a revised 84.2 in September, beating the 81.0 forecast economists had penciled in.
September's reading was the weakest since April 2014, lower than anything recorded during the pandemic.
The Present Situation Index, which tracks how consumers see business and labor conditions right now, increased by 8.6 points to 120.4. The Expectations Index, covering the next six months, recovered 6.9 points to 72.6, partially undoing three straight monthly declines.
Consumer confidence gauges
September vs October 2026 index levels
- September 2026
- October 2026
Bar chart. Index level (1985=100). Consumer Confidence Index: September 2026 84.20, October 2026 91.70. Present Situation Index: September 2026 111.80, October 2026 120.40. Expectations Index: September 2026 65.70, October 2026 72.60.
Cheaper fuel did much of the work. The average price for a gallon of regular gas was $4.27 Tuesday, down from $4.48 a month earlier, per auto club AAA. A year ago it averaged $3.05.
Spending plans still point lower
Consumers told the survey they plan to spend less on both services and durable goods over the next six months.
Planned purchases of electronics such as smartphones, laptops, and tablets pulled back by over 1%, while auto and home buying plans slipped on a six-month average basis.
"Consumer confidence advanced in October, driven primarily by improved perceptions of current and expected business conditions."
Fergus McCormick, The Conference Board
McCormick added that confidence remains on the long-term downward trend of the past few years, with higher price levels eroding purchasing power.
The labor read improved on paper even as hiring didn't. The share saying jobs were "plentiful" climbed to 26.7% from 24.3%, while those calling jobs "hard to get" held at 21.4%. Employers added 29K jobs last month against forecasts near 90K, and unemployment ticked up to 4.2%.
Midterm timing
The survey ran Oct. 1 to Oct. 21, about two weeks before the Nov. 3 midterm elections.
Consumer prices rose 3.7% in September from a year earlier, up from 3.4% in August, with the monthly gain of 0.6% the largest in five months. Average hourly wages grew 3%, the smallest annual increase since May 2021.
Confidence improved across all political affiliations in October, though far more among Republicans. Twelve-month inflation expectations eased but stayed elevated at 5.8%.
Sentiment surveys and spending don't always move together. Hilton and Royal Caribbean both flagged strong demand in earnings the same day, with Royal Caribbean's chief executive Jason Liberty noting 2027 bookings pacing ahead of historical levels at higher rates. That strength skews toward affluent households, the same group whose confidence rose in October.
