Americans Are Feeling Better About The Economy, But Many Are Still Worried About Finding Jobs.

Americans are feeling more optimistic about the economy after three months of declining confidence, but their expectations for finding jobs remain considerably weaker, according to new survey data.

The Conference Board's Consumer Confidence Index rose 7.5 points to 91.7 in October, up from an upwardly revised 84.2 in September. The rebound brought confidence back to its June level, helped by improved perceptions of business conditions and some easing in gasoline prices.

Yet only 15.2% of consumers expected more jobs to become available over the next six months, compared with 26.3% who anticipated fewer opportunities.

Both figures improved slightly from September, when 14.7% expected more hiring and 27.6% expected fewer jobs. Nevertheless, the share anticipating a weaker labor market exceeded those expecting improvement by 11.1 percentage points.

The difference comes as U.S. employers have slowed hiring substantially. The Bureau of Labor Statistics reported that the economy added just 29,000 jobs in September, compared with an average monthly gain of 45,000 over the previous year.

The unemployment rate stood at 4.2%, with approximately 7.1 million Americans unemployed. Long-term unemployment remained significant, with about 1.9 million people out of work for at least 27 weeks.

The Conference Board's Present Situation Index, which measures how Americans view current business and labor market conditions, jumped 8.6 points to 120.4 in October.

Consumers were more positive about businesses than a month earlier. Some 21.4% described current business conditions as good, up from 18.8% in September, while the share calling them bad declined from 20% to 17.8%.

Views of the current job market improved as well. About 26.7% said jobs were plentiful, compared with 24.3% in September. Another 21.4% said jobs were hard to get, unchanged from the previous month.

The Conference Board's labor market differential, which measures the gap between those describing jobs as plentiful and those saying they are difficult to find, improved to a positive 5.3 percentage points.

The outlook for the coming months was less encouraging. The Expectations Index, which tracks consumers' views of income, employment and business conditions over the next six months, recovered to 72.6 after three consecutive monthly declines.

Although that was an improvement from September's 65.7, the reading remained below 80, a threshold the Conference Board has historically associated with increased recession risk when weakness persists.

Consumers were also divided over the direction of business conditions. About 17.7% expected improvement, while 20.7% anticipated deterioration.

Income expectations were somewhat stronger, with 18.7% expecting their earnings to increase and 12% anticipating a decline. The results reflect consumers' expectations rather than actual future hiring decisions or economic outcomes.

The improvement in confidence has not translated into plans for stronger consumer spending. Fergus McCormick, senior economist for global indicators at the Conference Board, said the October recovery was driven mainly by better assessments of current and expected business conditions, with easing gasoline prices providing some relief.

But households continued to express frustration over the cost of food, groceries and energy, according to written responses collected as part of the survey.

Consumers' average inflation expectations for the next 12 months declined but remained elevated at 5.8%. Respondents also anticipated higher interest rates over the coming year.

Those concerns have a basis in recent economic data. The Bureau of Labor Statistics reported that consumer prices rose 3.7% over the 12 months ending in September, while average hourly earnings increased 3% over the same period.

The Conference Board found that Americans planned to reduce spending on services and big-ticket purchases over the next six months. Expectations for electronics purchases, including smartphones, computers and tablets, weakened, while plans to buy cars and homes declined slightly when measured over six months.

Vacation plans also softened as some 43.3% of respondents expected to take a vacation within six months, down from 44.2% in September, with more consumers favoring domestic trips over international travel.

The recovery in confidence was uneven across demographic groups. On a six-month moving-average basis, only adults younger than 35 and households earning at least $100,000 showed an improvement. Confidence among Gen X, Baby Boomers and the Silent Generation continued to trail that of younger adults.