In the lead-up to Election Day, American consumers are experiencing a noticeable increase in confidence, according to a recent report from a business research organization.

On Tuesday, the Conference Board announced that its consumer confidence index surged to 108.7 in October, up from 99.2 in September. This marks the largest monthly increase since March 2021 and far exceeds analysts’ expectations, which predicted a more moderate figure of 99.3.

The consumer confidence index takes into account individuals’ evaluations of current economic conditions as well as their expectations for the upcoming six months.

The short-term outlook concerning income, business conditions, and the job market also showed significant improvement, rising to 89.1, indicating an optimistic sentiment. It’s noteworthy that a reading below 80 can be interpreted as a potential warning sign for a recession on the horizon.

Additionally, the report highlighted that consumers’ perceptions of current economic conditions saw a substantial rise of 14.2 points, climbing to 138.

As consumer spending constitutes nearly 70% of the economic activity in the United States, economists closely monitor these trends to gauge the mood of American consumers and its potential implications for the broader economy.