The Conference Board’s consumer confidence index increased in October after a marginal improvement in September. The index rose to a reading of 125.9 (1985=100) from 120.6 in September.

“Consumer confidence increased to its highest level in almost 17 years (Dec. 2000, 128.6) in October after remaining relatively flat in September,” said Lynn Franco, director of economic indicators at The Conference Board. “Consumers’ assessment of current conditions improved, boosted by the job market which had not received such favorable ratings since the summer of 2001.”

Consumers were also considerably more upbeat about the short-term outlook, with the prospect of improving business conditions as the primary driver. “Confidence remains high among consumers, and their expectations suggest the economy will continue expanding at a solid pace for the remainder of the year,” Franco said.

Consumers’ outlook for the job market, however, was slightly less favorable than in September. The proportion expecting more jobs in the months ahead decreased marginally to 18.9% in October from 19.2% in September; however, those anticipating fewer jobs declined to 11.8% from 13.0%. The number of consumers stating that jobs were “plentiful” rose to 36.3% in October from 32.7% in September while those claiming jobs are “hard to get” edged down to 15.5% from 18.0%.

Regarding their short-term income prospects, the percentage of consumers expecting an improvement decreased marginally to 20.3% from 20.5% in September. However, the proportion expecting a decrease also declined to 7.4% from 8.6%.