U.S. Conference Board’s consumer confidence index rises in October

The consumer sentiment index in U.S. continues to be strong in October. The Conference Board’s index of consumer confidence rose to 137.9 from September’s downwardly revised 135.3. This was above expectations of 136 and implies a sound pick-up in sentiment.

The rebound in October was widespread as both the present situation and expectations indices saw rises in the month. Survey details indicate that consumers turned a bit more optimistic regarding business conditions and the employment situation over the near term, which aided in stimulating their assessment of the present situation, noted Barclays in a research report.

Furthermore, additional consumers expect business conditions to either stay the same or turn better over the coming six months, while an increased percentage also expect incomes to rise. Plans to purchase major appliances, homes and automobiles remained widely stable from September.

“In all, today’s report suggests that consumer sentiment remains on a strong footing and is expected to support domestic demand in the coming quarter”, added Barclays.

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