The Consumer Confidence Index rose to its highest level since April, and now sits more than 12 points higher than where it was just two months ago, Wells Fargo economists Tim Quinlan and Shannon Seery said in a Sept. 27, 2022, report.
They also said falling gasoline prices and a still-tight labor market are the main reasons for a recent rebound in confidence.
But they said as inflation persists and the Fed lifts rates to combat it, we're unlikely to see confidence approach pre-pandemic levels.
According to the economists:
- The near five-point gain in consumer confidence in September lifted the index to 108.0.
That marks the highest level in five months, and in conjunction with the sizable gain in August, puts the index 12.7 points higher than where it stood just two months ago.
- Both consumers view of their present situation, which rose to 149.6 from 145.3 previously, and expectations of the future improved.
In fact, at 80.3 expectations have not been this high since February, a sharp pivot from recent pessimism about coming economic conditions.
The economists said most measures of labor demand have shown signs of topping out.