Consumer Confidence Jumps as Labor Market Optimism Outweighs Inflation Concerns

Asia's Tech News Daily

U.S. consumer confidence rose in October after three consecutive months of declines, as a spike in concerns about inflation was outweighed by upbeat sentiment in financial and jobs prospects.

The Conference Board said in an Oct. 26 report that its headline consumer confidence index rose to a reading of 113.8 in October, up from 109.8 in the prior month.

“Consumer confidence improved in October, reversing a three-month downward trend as concerns about the spread of the Delta variant eased,” Lynn Franco, Senior Director of Economic Indicators at The Conference Board, said in a statement.

Concerns about inflation surged to a 13-year high, Franco said, but noted that the impact of rising prices on overall confidence remained muted.

“The proportion of consumers planning to purchase homes, automobiles, and major appliances all increased in October—a sign that consumer spending will continue to support economic growth through the final months of 2021,” she said.

Consumer spending is a major driver of the U.S. economy, accounting for around two-thirds of output.

Another datapoint reflective of a continued rebound in consumers’ willingness to travel and spend on in-person services was a measure of vacation plans. Close to half of respondents told the Conference Board they intend to take a vacation at some point in the next six months, with the measure hitting its highest level since February 2020.

Two other gauges, one assessing current economic conditions and the other reflecting consumers’ future outlook over the short-term, both rose in October.

The present situation index, which measures consumers’ assessment of current business and jobs market conditions, rose to 147.4 from 144.3 in September, though appraisal was mixed as to the discrete components.

While the percentage of consumers who said current business conditions are “good” fell to 18.6 percent in October from 19.1 in the prior month, the percentage of consumers who said business conditions were “bad” dropped from 25.3 percent to 24.9 percent.

Current labor market assessments were somewhat more optimistic. The percentage of respondents who said jobs are “plentiful” ticked down to 55.6 percent from 56.5 percent. At the same time, 10.6 percent of consumers said jobs are “hard to get,” down from 13.0 percent in the prior month.

The components of the six-months forward expectations for business conditions were also mixed, though the forward-looking labor market outlook was more optimistic than the current. In October, 25.4 percent of consumers expected more jobs to be available six months ahead compared to 21.3 percent in September. At the same time, 18.3 percent in October expect fewer jobs six months ahead, compared to 19.9 percent in the prior month.

Six-months ahead financial prospects also showed improvement in October compared to the prior month, with 18.7 percent of consumers saying they expect their incomes to rise, up from 16.9 percent in September.

The generally optimistic assessment of labor market conditions comes as the number of job openings in the United States remains near a record high. The most recent Labor Department data shows that the number of job vacancies eased from a record 11.1 million at the end of July to 10.4 million on the last day of August—still a historically elevated number.

Also, the so-called quits rate—which reflects worker confidence in being able to find a better job—has risen to a record high of 2.9 percent, Labor Department data showed, painting a picture of job market tightness and growing pricing power of workers.

Consumer price inflation, meanwhile, is running at around a 30-year high and well beyond the Fed’s 2 percent target, pressuring policymakers to roll back some of the emergency stimulus measures, including around $120 billion in monthly asset purchases. 

By Tom Ozimek

 

Tom Ozimek has a broad background in journalism, deposit insurance, marketing and communications, and adult education. The best writing advice he’s ever heard is from Roy Peter Clark: ‘Hit your target’ and ‘leave the best for last.’

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

5 Reasons Why You Should Create an Emergency Response Program for Your Business

When most people think about running a business, what comes to mind is managing the day-to-day administrative and operational tasks of providing products or services to customers. While it’s true ... Read more »

Start an Amazon FBA Side Hustle Today

The internet has made collaboration and communication easier than ever. But it’s also made it easier to make extra money. So much so, that more than one-third of Americans today ... Read more »

Most of What You Know About Business Purpose Is Wrong

Your company’s purpose is the valuable reason it exists. Purpose-driven businesses focus on that purpose and align everything else around it — including how and why they make money.  Unfortunately, ... Read more »

5 Penny Stocks To Buy For Under $5 Right Now

Are These Penny Stocks On Your December Watch List? If you’re making a penny stocks watch list, you’re not alone. Right now, there are hundreds of penny stocks to choose ... Read more »

These Were the Ten Worst Performing Stocks of November 2021

November has historically been a strong month for the stock markets. This year, however, the concern over the new COVID-19 variant pulled back the rally a bit towards the end ... Read more »

Storyboard18 | Marketers believe they write good briefs. Ad agency execs disagree

At a fundamental level, briefs are the most elegant definition of the problem that the brand or business is facing. Adman Dave Dye asked on his blog ‘Stuff from the loft’: ... Read more »

Your New Year Trip: Bali, Indonesia

Kuta, a vibrant coastal town in Indonesia, is one of the most popular locations for New Year’s Eve celebrations. Entry guidelines: You will be able to enter Indonesia under the ... Read more »

Lost your Aadhaar card? Download and save it on your phone. Here's how

Keeping e-Aadhaar on your phone is an easy way to keep the document handy in case you lose the card. (File photo) Losing identification documents such as voter id cards ... Read more »

Interview | Social media sensation Kili Paul on his Bollywood connect and walking 2 hours daily just to charge his phone

Life for Tanzanian siblings Kili Paul and Neema changed after a video of them lip-synching to Raatan Lambiyan from Shershaah went viral on Instagram. That one song garnered over one million views (and still counting) ... Read more »

Yuzu and Indian spices mingle in this Indo-Japanese gin

From sushi to Kikkoman soy sauce and varieties of sake, several Japanese food and beverage products have made their way into India and gained wide acceptance over the years. Jai ... Read more »

'Lead Me Home' review: Two American filmmakers look inwards, at poverty in the US

‘Lead Me Home’ is a 40-minute documentary on homelessness in America. (Image: Screen grab) Hawai’ian poet Juliet Kono writes, impersonating a homeless man’s mother in her poem Homeless (From the ... Read more »

Elon Musk shares photo of 'Starships', promises to make Mars travel a reality

The photo of ‘Starships’ tweeted by Elon Musk. Elon Musk shared a photo of his Starships on Twitter a day after he announced that SpaceX has begun building a launchpad ... Read more »

Marvell Technology (NASDAQ:MRVL) a Buy After its Marvelous Q3

Marvell Crushes Q3 Earnings and Has the Makings of a Semi Leader A big part of the allure of investing in semiconductor companies such as Marvell Technology (NASDAQ: MRVL) is ... Read more »

Siderurgica Nacional (SID) Dips More Than Broader Markets: What You Should Know

Siderurgica Nacional (SID) closed the most recent trading day at $4.08, moving -0.97% from the previous trading session. This change lagged the S&P 500’s 0.85% loss on the day. Meanwhile, ... Read more »

Learn Technical Analysis Skills to Master the Stock Market

When you’re building a business, you’re likely pumping a lot of your personal wealth into your company. That’s why it’s important to find ways to continue to grow your wealth ... Read more »

Comcast (CMCSA) Gains As Market Dips: What You Should Know

In the latest trading session, Comcast (CMCSA) closed at $51.78, marking a +0.54% move from the previous day. This move outpaced the S&P 500’s daily loss of 0.85%. At the ... Read more »

Canon (CAJ) Gains As Market Dips: What You Should Know

In the latest trading session, Canon (CAJ) closed at $22.46, marking a +1.26% move from the previous day. The stock outpaced the S&P 500’s daily loss of 0.85%. Elsewhere, the ... Read more »

Crown Castle (CCI) Stock Moves -0.42%: What You Should Know

Crown Castle (CCI) closed the most recent trading day at $184.86, moving -0.42% from the previous trading session. This move was narrower than the S&P 500’s daily loss of 0.85%. ... Read more »

Juniper Networks (JNPR) Gains As Market Dips: What You Should Know

Juniper Networks (JNPR) closed at $31.27 in the latest trading session, marking a +0.19% move from the prior day. This change outpaced the S&P 500’s 0.85% loss on the day. ... Read more »

5 Defensive ETF Bets as Omicron Enters the United States

The highly mutated new COVID-19 variant, omicron, has finally entered the United States. Dr. Anthony Fauci has confirmed that the first case has been detected in California in a traveler ... Read more »

Raytheon Technologies (RTX) Stock Moves -0.67%: What You Should Know

Raytheon Technologies (RTX) closed at $81.11 in the latest trading session, marking a -0.67% move from the prior day. This move was narrower than the S&P 500’s daily loss of ... Read more »

Western Digital (WDC) Gains As Market Dips: What You Should Know

Western Digital (WDC) closed the most recent trading day at $57.52, moving +1% from the previous trading session. This change outpaced the S&P 500’s 0.85% loss on the day. Elsewhere, ... Read more »

Methanex (MEOH) Dips More Than Broader Markets: What You Should Know

Methanex (MEOH) closed at $39.78 in the latest trading session, marking a -1.07% move from the prior day. This move lagged the S&P 500’s daily loss of 0.85%. At the ... Read more »

ServiceNow (NOW) Dips More Than Broader Markets: What You Should Know

ServiceNow (NOW) closed the most recent trading day at $613.11, moving -1.65% from the previous trading session. This change lagged the S&P 500’s 0.85% loss on the day. Elsewhere, the ... Read more »

V.F. (VFC) Gains As Market Dips: What You Should Know

V.F. (VFC) closed the most recent trading day at $74.51, moving +0.59% from the previous trading session. This change outpaced the S&P 500’s 0.85% loss on the day. Meanwhile, the ... Read more »

Buy These Strong Tech Stocks Now at Big Discounts Amid Omicron Selloff?

Selling returned to the market in a big way Friday, prolonging a wild up-and-down stretch that began on Black Friday. Constant headlines and current uncertainty surrounding the Omicron variant, alongside ... Read more »

Levi Strauss (LEVI) Stock Moves -0.71%: What You Should Know

Levi Strauss (LEVI) closed the most recent trading day at $25.20, moving -0.71% from the previous trading session. This move was narrower than the S&P 500’s daily loss of 0.85%. ... Read more »

NMC Group fraud case: B.R. Shetty back in UK court to annul UAE bank's $1billion freezing order

Dr B.R. Shetty is the founder of NMC Group, which has 200 clinics and hospitals in 19 countries. In December 2020, the high court in London imposed a worldwide freezing ... Read more »

Was Nagaland killings a case of mistaken identify? Here's what the Army has to say

The incident happened in Mon district which shares a porous border with Myanmar where the insurgent faction NSCN (K) are from. (Image credit: File photo) After 11 civilians were killed ... Read more »

5 Reasons Why Your Corporate Blog Has Hit a Wall

Corporate blog content creation is a top priority of more than 50% of marketers. And with so many benefits — including the ability to reach, engage and convert prospects — you ... Read more »

Wikipedia founder Jimmy Wales's personal computer and NFT of first edit up for auction in New York

The personal computer that Wikipedia founder Jimmy Wales used when programming the online reference resource 20 years ago is going under the hammer, along with an NFT memorializing his first ... Read more »

Beat inflation with up to 7.05% FD interest rates offered by Bajaj Finance

The harsh economic conditions of the past year have made inflation quite an intense issue to deal with. In June 2021, retail inflation stood at 6.26%, but it has, thankfully ... Read more »

Mr. Beast, YouTube Star, Wants to Take Over the Business World

FILE: A Mr. Beast burger in New York on Feb. 24, 2021, from Jimmy Donaldson’s virtual chain. (Adam Friedlander/The New York Times) Jimmy Donaldson, 23, a YouTube megastar better known ... Read more »

5 Tips for Building a Remote-First Business

Almost 42% of U.S. companies were remote throughout 2020 and the number of out-of-the-office workers is set to double within the next five years. Read more »

44 million pending court cases: How did we get here?

Illustration by Suneesh K. This has now become a weekend ritual for our honourable judges. Any Sunday or Monday, if you take the trouble to open a newspaper—or check the ... Read more »

Clara, the idea that was born from a roasted carnita and became the fastest growing Latin startup

Many of the world’s greatest ideas have emerged from casual conversations between friends. A few years ago Gerry Giacomán attended a roast carnita in his native Monterrey where he met ... Read more »

How Leaders Can Beat the Labor Crisis

By now, we’re all intimately familiar with the ongoing labor crisis, either because of the constant media coverage or because you or your company is feeling the effects first-hand. No ... Read more »

How This Maya Angelou Quote Can Fuel Your Ethos at Work and Beyond

I love Maya Angelou and her work, and these words of hers have become the way I live my life: “I’ve learned that people will forget what you said, people ... Read more »

Why Mental Health is Central to Your Business Continuity Plan

Covid-19 has shown us many things — most importantly, that large-scale, unexpected business disruptions can happen anytime, anywhere. How we prepare for these disruptions sets the course for how businesses ... Read more »

3 Ways to Eliminate Data Biases at Your Company

AI and machine learning are becoming synonymous with business success. Everywhere you look, companies are utilizing data to reach new heights. In spite of its benefits, though, utilizing data analysis ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic