WASHINGTON, DC – American consumer confidence, as measured by the Refinitiv/Ipsos Primary Consumer Sentiment Index, is at 52.6 for October 2020, up 2.0 points from last
Consumer Confidence In October Is At Its Highest Observed Point Since March
After two months of significant positive growth observed, American consumer confidence is at its highest observed point since March of this year, despite much volatility. All sub indices are showing significant gains for a second consecutive month as well. The Expectations Index is the only sub index that is higher (+1.0) than it was at this time last year. All other sub indices down by at least 9.5 points.
“As we near closer to the election, American consumer confidence is improving. With the unemployment rate dipping down 7.9%, a measure that has declined consecutively for five months, it is not unfeasible to see why people have become more optimistic about their current and future financial situation,” notes Chris Jackson of Ipsos. “More natural volatility should be anticipated as there are many factors that go into this metric, but as long as the unemployment rate continues to drop, we can expect to see this upward trend to continue.
Jharonne Martis, Director of Consumer Research at Refinitiv, said, “Coincidentally, digital spending is also improving. The pandemic has substantially accelerated the pace and shift to online shopping. U.S. retail e-commerce sales grew 29.6% in the first half of the year. This is expected to grow in further to 46.1% in the second half of the year, according to Refinitiv IFR."
The PCSI Current Condition Index is up 1.7 points from last month and now sits at 42.4. American sentiment in this index has been trending upwards since May of this year. While still improving, the metric is far below the level it reached in October of the previous year (55.0).
The PCSI Expectations Index, currently at 66.1, is up 2.0 points from last month. The metric has fully recovered from a nearly five point drop observed in August. Despite an initial pandemic related drop, the Index is now one point higher than it was at this point a year ago (65.1).
The PCSI Investment Index, indicative of American's confidence in their ability to invest in their future, is up significantly this month again. At 45.8, the Index has gained 1.3 points this month. This is a continuing record high for the metric.
American'ss confidence regarding their job security and future employment is on the rise. The Jobs Index, currently at 58.9, has grown by at least 3 points in each of the last two months and has hit its highest mark since March of this year.