Despite fewer job openings, Americans feel upbeat about the economy heading into the election
As the US presidential election approaches, consumer optimism about the economy has risen, despite job openings hitting multi-year lows, CNBC reported Tuesday.
The Conference Board’s October consumer confidence index showed an 11 percent increase, reaching 138 – marking the largest monthly rise since March 2021.
Additionally, the board’s expectations index, which tracks future economic conditions, rose by almost 8 percent to 89.1, well above the recessionary sub-80 threshold.
This rise in consumer confidence defied economists’ forecasts, as a Dow Jones survey had projected a headline number of 99.5.
“Consumers’ assessments of current business conditions turned positive,” said Dana Peterson, chief economist at the Conference Board.
She noted that “views on the current availability of jobs rebounded after several months of weakness, potentially reflecting better labour market data.”
However, the Bureau of Labor Statistics reported a decline in US job openings, down to 7.44 million in September – a drop of over 400,000 from the prior month’s revised figure, marking the lowest level since January 2021. This figure also fell short of Wall Street’s forecast of 8.0 million.
With this decrease, the ratio of job vacancies to available workers has shifted to below 1.1 to 1, contrasting with the 2 to 1 ratio seen in mid-2022.
Despite fewer openings, hiring showed a monthly increase of 123,000, while separations remained steady, and the number of quits dropped by 107,000.
