Consumer confidence improved in October as gas prices declined, but inflation, weak hiring and rising borrowing costs continue to strain households ahead of the midterm elections.

Americans are feeling somewhat better about the economy, but that doesn’t mean life has become more affordable. The Conference Board’s Consumer Confidence Index climbed to 91.7 in October from 84.2 in September, recovering from its lowest reading since 2014. Falling gasoline prices helped improve sentiment, with the national average dropping from $4.48 a gallon last month to $4.27 this week. But drivers were paying just $3.05 a year ago, meaning a typical 15-gallon fill-up still costs more than $18 above last year’s price.

The improvement also comes as inflation continues to erode purchasing power. Consumer prices rose 3.7% in September compared with a year earlier, while average hourly wages increased just 3%, according to federal data. That means pay growth is falling behind inflation, leaving many households with less purchasing power despite earning more on paper. Survey respondents continued expressing frustration with the cost of groceries, energy and everyday services, suggesting that October’s confidence rebound reflects some relief from recent price increases rather than a meaningful improvement in household finances.

The labor market offers little reassurance. Employers added only 29,000 jobs in September, far below economists’ expectations of approximately 90,000, while unemployment climbed to 4.2%. The Federal Reserve also raised its benchmark interest rate last month to combat persistent inflation, potentially making mortgages, credit cards and auto loans more expensive. Although more survey respondents described jobs as plentiful in October, the percentage saying employment was difficult to find remained unchanged at 21.4%. The disconnect underscores how improving economic expectations can coexist with significant financial uncertainty.

With the November 3 midterm elections approaching, affordability remains a political vulnerability for Donald Trump and Republicans. Trump has repeatedly blamed high prices on Joe Biden, but inflation has accelerated since Trump returned to office in January 2025, and gasoline remains considerably more expensive than a year ago. For voters, the latest confidence figures present a contradiction: Americans are becoming less pessimistic about the economy without necessarily experiencing financial relief. A modest decline at the gas pump may improve the national mood, but it doesn’t erase the pressure of higher grocery bills, stagnant purchasing power and an increasingly difficult job market.