Consumers are gaining confidence, yet higher prices still an anchor

Wells Fargo Research Team Wells Fargo

Summary

Despite the upside surprise in October consumer confidence, inflation is still a top concern weighing on percpetions. The looming presidential election ranks behind economic worries in consumers' minds.

October surprise

The Conference Board's Consumer Confidence Index jumped to 108.7 in October, amid more favorable views of current conditions and improved expectations about the future (chart). We suspect most of the gain is due to brighter views of the jobs market and lower gas prices in the last month. But the jump somewhat surprises us with the U.S. presidential election around the corner.

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Wells Fargo Research Team

Wells Fargo

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