Consumer confidence rebounded in September by the most in more than 17 years as Americans grew more upbeat about the outlook for the economy and job market, though sentiment remained below pre-pandemic levels.
The Conference Board’s index increased 15.5 points, the most since April 2003, to 101.8 from August’s upwardly revised 86.3, according to a report issued Tuesday. The median forecast in a Bloomberg survey of economists called for a reading of 90 in September, and the figure exceeded all estimates.
Respondents indicated they were more likely to make big purchases in the months ahead. The share expecting to buy major appliances rose to a seven-month high of 49% from 44.9%. Those planning to buy a car increased to 11.8% from 10.1%, and more intended to buy a home.
The share of survey respondents who said they expected their incomes to increase rose to a six-month high of 17.5%, though that’s down from 22.7% who said so in February before the pandemic. Optimism in general was driven by higher-income individuals, the report showed.
Larger shares also expected more jobs and better business conditions in coming months.
Consumers that said business conditions are currently favorable increased to a five-month high of 18.3% from 16%. The percentage of consumers who said jobs are hard to come by decreased to 20%, the lowest since March, from 23.6%.