U.S. consumer confidence recovers in October as gas prices eased a bit

U.S. Consumer confidence recovers in.

Key points

• Hiring dropped from a downwardly revised 133, 000 in August and Labor Department revisions additionally shaved 60, 000 jobs off combined July and August payrolls.
• News Yuri Kageyama, Associated Press, Matt Ott, Associated Press April 8, 2026.
• The Conference Board remarked Tuesday that its consumer confidence index rose 7.5 points to 91.7 in October from 84.2 last month.
• Respondents' views of their present situation rose by 6.9 points to 72.6 while their short-term outlook climbed 8.6 points to 120.4.
• A customer shops at a grocery store in Arlington Heights, Ill., Monday, July 6, 2026.

U.S. Consumer confidence recovers in October as gas rates eased a bit. By: Matt Ott, Associated Press – October 27, 2026.

In practice, a customer shops at a grocery store in Arlington Heights, Ill., Monday, July 6, 2026. (AP Photo/Nam Y. Huh).

In practice, the Conference Board remarked Tuesday that its consumer confidence index rose 7.5 points to 91.7 in October from 84.2 last month.

Though it remains much more expensive to fill up a tank than last year at this time, WASHINGTON (AP) – American confidence in the economy rebounded somewhat in October as gas rates fell modestly.

Yet Americans remain flustered by the economy after five years of elevated inflation, potentially posing a risk to President Donald Trump and Republicans in the midterm elections next Tuesday.

"The recovery was in line with retail gasoline prices easing from September to October, " remarked Fergus McCormick, a senior economist for The Conference Board. "Yet, despite the increase in October, consumer confidence remained on the long-term downward trend that's persisted over the past few years."

According to the auto club AAA, the average cost for a gallon of regular gas in the U.S. Was $4.27 Tuesday, down from $4.48 a month ago. Last year at this time, a gallon of regular in the U.S. Averaged $3.05.

Write-in responses to the board's survey, collected between October 1-21, were still broadly pessimistic this month, with frequent references to the high cost of energy, goods and services.

Trump has continued to blame high rates on his predecessor, Democrat Joe Biden, yet inflation has risen since Trump's inauguration last year.

Earlier this month, the administration noted that consumer inflation accelerated in September as goods and services became more expensive, evidence that rising rates remain an economic challenge just seven days before midterm elections that have focused heavily on affordability.

Meanwhile, the consumer cost index rose 3.7% in September compared with a year ago, according to the Labor Department, up from 3.4% in August. On a monthly basis, costs jumped 0.6% from August to September, the biggest gain in five months.

Though few expect it at this week's Fed gathering, six weeks ago, the Federal Reserve raised its benchmark interest rate for the first time since 2023 in a bid to tamp down that stubbornly high inflation, and the central bank signaled another rate hike could occur afterwards this year.

Notably, the quarter-point growth lifted the Fed's key rate to concerning 3.9% and, over time, could result in higher borrowing costs for mortgages, auto loans and credit cards.

Notably, the most recent measure of the Federal Reserve's preferred inflation gauge – the personal consumption expenditures cost index, or PCE – rose 3.4% in August from a year earlier. That's slightly better than July's 3.7% year-over-year growth but up from 2.8% before the Iran war began on Feb. 28. It was 2.5% when Trump was inaugurated in January 2025. Meanwhile, the administration matters its September PCE data Thursday.

Though the employment landscape has not, the view of the current labor market improved from September.

Meanwhile, the percentage of respondents that remarked jobs were "plentiful" rose from 24.3% in September, to 26.7% this month. The percentage of those saying jobs were "hard to get" remained at 21.4%.

U.S. Employers continued a disappointing 29, 000 jobs last month and the unemployment rate ticked up to 4.2%. Economists had projected September payrolls to come in around 90, 000.

Inflation has dominated conversations this year in business and households and meager pay raises have created rising costs more painful for plenty of. Average hourly wages are not keeping pace with inflation, rising just 3% last month from a year earlier, the smallest year-over-year gain since May 2021. Regarding the Author(s). Matt Ott, Associated Press. News Alex Veiga, Associated Press October 22, 2026.

Average long-term US mortgage rate eases to 7.32% in first pullback since late August.

Borrowing costs on 15-year fixed-rate mortgages, often sought by borrowers refinancing a home loan, additionally eased this week. That average rate slipped to 6.68% from 6.71% last week. More From This Author. Economy Matt Ott, Associated Press July 28, 2026.

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Retail sales up a better-than-expected 0.8% in September as shoppers remain resilient.

While department stores posted a 1.6% growth, business at furniture and home stores rose 1.3%. As the report notes, business at online retailers rose 0.3%. Economy Christopher Rugaber, Associated Press October 14, 2026.

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Taken together, the developments around U.S. Consumer confidence recovers in October as gas prices eased a bit point to a situation that is still moving, and the coming days should bring more clarity.