Here's Why U.S. Consumer Confidence is Climbing Ahead of Election Day

American consumers are feeling quite a bit more confident this month as Election Day approaches, a business research group says. The Conference Board said Tuesday that its consumer confidence index jumped to 108.7 in October from 99.2 in September. It was the biggest monthly gain since March of 2021. Analysts forecast a more modest reading of 99.3.

The measure of Americans’ short-term expectations for income, business and the job market jumped to 89.1. The Conference Board says a reading under 80 can signal a potential recession in the near future.

“Consumers’ assessments of current business conditions turned positive,” said Dana Peterson, the Conference Board’s chief economist. “Views on the current availability of jobs rebounded after several months of weakness, potentially reflecting better labor market data.”

The government reported earlier this month that the U.S. economy added 254,000 jobs in September, much more than was forecast. The unemployment rate dipped to 4.1 percent. The October jobs report comes out Friday.

Also Tuesday, the Labor Department reported that U.S. job openings tumbled last month to their lowest level since January 2021, possibly signaling that the labor market is losing some momentum. Still, openings remain well above pre-pandemic levels.

Tepid jobs numbers from July and August had been dragging on Americans’ confidence and along with receding inflation, played a significant role in the Federal Reserve’s decision to cut its benchmark borrowing rate by 50 basis points, double the usual amount.