Consumer Confidence Rebounds in October From a Decade Low as Gas Prices Ease

Americans felt somewhat better about the economy in October, according to a closely watched survey released on Tuesday, as gasoline prices came down from their September peak. But the improvement started from a very low point, and the group behind the survey cautioned that the longer trend still points down.

The Conference Board said its consumer confidence index rose to 91.7 in October from 84.2 in September, according to the Associated Press and The Hill. The September reading, revised up from an initial 81.9, was the lowest in more than a decade; the AP said it was the weakest since April 2014.

Fergus McCormick, the Conference Board’s senior economist, tied the rebound to the pump. In comments reported by both outlets, he said the recovery was in line with retail gasoline prices easing from September to October.

Gas remains expensive by recent standards. The national average was about $4.27 a gallon on Tuesday, according to AAA figures cited by the AP and The Hill, down roughly 21 to 22 cents from a month earlier. A year ago, the AP noted, a gallon cost about $3.05. Prices climbed sharply after the United States and Israel went to war with Iran in February, disrupting oil shipments through the Strait of Hormuz.

Other pressures have not gone away. Consumer inflation accelerated in September, both outlets reported. The Hill reported that annual inflation rose to 3.7 percent from 3.4 percent in August. In written answers collected for the survey, the AP reported, respondents continued to cite high costs as a top worry.

Mr. McCormick was careful not to oversell the rebound. Confidence, he said, remains on the long-term downward trend that has persisted over the past few years.

The report gives some support to those who argue the worst of the energy shock may be passing: if gas keeps falling, household budgets will get some relief heading into the holidays. Skeptics note that a one-month bounce from a decade low is a modest gain, that prices remain well above last year’s level and that inflation was moving the wrong way as of September.

The figures also carry political weight. The midterm elections are on Nov. 3, and the AP noted that public frustration with the economy poses a risk for Republicans.

Economists watch confidence surveys for clues about whether households will keep spending or start to pull back, and the next few months of gas prices may matter more than any single reading.