The latest consumer sentiment index reflected a bullish US consumer.
The preliminary reading for October from the University of Michigan was 92.1, better than expected.
The report showed that personal financial expectations rose to the highest level since 2007. Consumers’ views on purchasing durable goods, which tend to be more expensive than products they use up quickly, also rose to an eight-year high.
“While consumers anticipate a continued economic expansion, many expected strong headwinds from falling commodity prices, weakened economies in China and elsewhere as well as continued stresses on European countries. Perhaps the most important finding is that low inflation and continued job growth have enabled consumers to adapt to a slower and more variable rate of economic growth by varying the pace of their spending without losing confidence that the expansion will continue. Overall, the data still indicate that consumption will expand at 2.9% during 2016.”
Economists had estimated that the preliminary index for October was 89, according to Bloomberg. It read at 87.2 in the prior period, which was one of the lowest levels of the year.