Economy: Consumer Confidence Index (CCI) for October 2017

The Consumer Confidence Index® (CCI) for this month (October 2017) was released by The Conference Board® this morning:

Predicted: 121.0
Actual: 125.9

The "predicted" figure is what economists were expecting, while the "actual" is the true or real figure.

From Today's Report:

"...'Consumer confidence increased to its highest level in almost 17 years (Dec. 2000, 128.6) in October after remaining relatively flat in September,' said Lynn Franco, Director of Economic Indicators at The Conference Board. 'Consumers’ assessment of current conditions improved, boosted by the job market which had not received such favorable ratings since the summer of 2001. Consumers were also considerably more upbeat about the short-term outlook, with the prospect of improving business conditions as the primary driver. Confidence remains high among consumers, and their expectations suggest the economy will continue expanding at a solid pace for the remainder of the year.'

Consumers’ appraisal of present-day conditions improved in October. The percentage saying business conditions are 'good' increased from 33.4 percent to 34.5 percent, while those saying business conditions are 'bad' rose marginally from 13.2% to 13.5%. Consumers’ assessment of the job market was more upbeat. The percentage of consumers stating jobs are 'plentiful' increased from 32.7% to 36.3%, while those claiming jobs are 'hard to get' decreased slightly from 18.0% to 17.5%.

Consumers’ optimism about the short-term outlook also rose in October. The percentage of consumers expecting business conditions to improve over the next six months increased from 20.9% to 22.2%, while those expecting business conditions to worsen decreased from 9.6% to 6.9%.

Consumers’ outlook for the job market, however, was somewhat less favorable than in September. The proportion expecting more jobs in the months ahead decreased marginally from 19.2% to 18.9%, however, those anticipating fewer jobs declined from 13.0% to 11.8 percent. Regarding their short-term income prospects, the percentage of consumers expecting an improvement decreased marginally from 20.5% to 20.3%, however, the proportion expecting a decrease declined from 8.6% to 7.4%..."

Every month, The Conference Board sends a questionnaire to 5,000 U.S. households. Survey participants are polled about their feelings regarding the U.S. economy, current and future, and about their own fiscal circumstances. On average, 3,500 participants complete and return the 5-question survey.

The baseline "100" score for the CCI is associated with 1985 survey data.

When consumers feel good about the economy, they tend to do more spending, and vice versa.

Based in New York City, The Conference Board is a private, not-for-profit organization with a mission to, "create and disseminate knowledge about management and the marketplace to help businesses strengthen their performance and better serve society."

The CCI is usually released on the last Tuesday of the month.

Last month, the CCI was 120.6 (revised.)