Consumer sentiment increased in October: Conference Board

Consumer sentiment rose in October, as Americans’ views of present and future business conditions improved, according to a new survey.

The Conference Board’s Consumer Confidence Index rose from 84.2 in September to 91.7 this month. Last month’s index, which the Conference Board revised upward from 81.9, marked the metric’s lowest point in more than a decade.

The expectations index, based on consumers’ six-month outlook of economic conditions, increased by 6.9 points to 72.6. The index had declined for three consecutive months.

Fergus McCormick, a senior economist at the Conference Board, said consumer sentiment rising in October “was in line with retail gasoline prices easing from September.”

A gallon of regular gas costs roughly $4.26 on average as of Tuesday, down about 22 cents from a month ago, according to AAA . Gas prices have risen throughout the Iran war , as the Islamic Republic’s restrictions on shipping in the Strait of Hormuz hamper the energy industry.

Diesel prices are also down by roughly 12 cents per gallon over the last month, AAA reported. A gallon of diesel fuel, however, is nearly $2.70 more expensive than a year ago.

Despite October’s uptick, consumer confidence “remained on the long-term downward trend that’s persisted over the past few years,” McCormick noted.

“Consumers planned less spending on services and durable goods over the next six months,” he added. “This likely reflected higher price levels and persistent inflation, which eroded consumers’ purchasing power.”

Annual inflation was 3.7 percent in September , up from 3.4 percent in August , according to the consumer price index . Energy prices also experienced their largest monthly increase since March, the first full month of the Iran conflict.

Americans’ view of the economy will define the midterms , as Republicans face headwinds and Democrats seek to snag control of Congress for the bulk of President Trump’s final two years in office.