Consumer spending rises, job openings fall as election nears

With Election Day less than a week away, two reports dropped yesterday, giving a glimpse of the current economic condition.

The Conference Board reported that the consumer confidence index rose to 108.7 in October from September’s 99.2, marking the highest monthly gain since March 2021 and implying that Americans feel confident about the economy.

According to the Board, more people plan to buy homes and cars, showing consumer optimism.

The index, which gauges views on current and future economic conditions, suggests that consumers are increasingly optimistic about their finances, with fewer people expecting a recession.

However, recent job data indicates a mixed labor market. Job openings fell to 7.4 million in September, down from 7.9 million in August, reaching their lowest level since January 2021. Unemployment remained at 4.1%.

Economists suspect the drop is partly affected by the back-to-back hurricanes and the ongoing Boeing strike.

The job drop was notable in the healthcare and government sectors, and layoffs rose. The number of people quitting jobs hit its lowest since August 2020, suggesting that workers may feel less confident about finding new jobs if they leave their current ones.

The Federal Reserve recently cut its rate by 50 basis points. It expects more cuts in the coming years to support a softening job market.

Since consumer spending makes up about 70% of the US economy, the rising confidence is seen as a positive sign for economic health.