Consumers are becoming more optimistic about the U.S. economy as the contentious presidential election approaches even as job opportunities reach multi-year lows, according to separate reports released Tuesday.
The Conference Board's Consumer Confidence Index for October rose more than 11% to a reading of 138, its largest single-month acceleration since March 2021. Along with that, the Conference Board's expectations of future conditions index jumped nearly 8% to a reading of 89.1. This is quite clear from the level below 80 which indicates recession.
Economists surveyed by Dow Jones were looking for a headline number of 99.5.
“Consumers' assessments of current business conditions have turned positive,” said Dana Peterson, the board's chief economist. “Views on job availability have now rebounded after several months of weakness, which may reflect better labor market data.”
That sentiment appeared to contradict a Bureau of Labor Statistics report that showed job openings fell to 7.44 million in September, down more than 400,000 from the downwardly revised level of the previous month and the lowest since January 2021. That number was also below Wall Street's level. Forecast 8.0 million.
The decline in job openings has reduced the ratio of job openings to available workers to less than 1.1 to 1. In mid-2022, the number was greater than 2 to 1.
Although the level of openings was down, hirings rose by 123,000 during the month. There was little change in separations, while job departures decreased by 107,000.
