While economic uncertainty remains high, consumer confidence increased to the highest level since April, according to the Consumer Confidence Index. Confidence was positively impacted by solid job gains, declining gas prices, and easing inflation, according to an analysis by the NAHB.
The Consumer Confidence Index, reported by the Conference Board, increased 4.4 points from 103.6 to 108.0 in September, the highest level since April 2022. The Present Situation Index increased 4.3 points from 145.3 to 149.6, and the Expectation Situation Index climbed 4.5 points from 75.8 to 80.3, the highest since February 2022.
The purchasing intention to buy cars and major appliances increased, while the intention to buy homes fell due to the rising mortgage rates. Looking forward, consumer spending will continue to face headwinds from inflation and interest rate hikes.
The Conference Board also reported the share of respondents planning to buy a home within six months. The share of respondents planning to buy a home stayed slightly fell to 5.3% in September, the lowest level since September 2021. The share of respondents planning to buy a newly constructed home remained at 0.6%, while those who are planning to buy an existing home rose to 2.3%.
