FX & CFD trading involves significant risk
The Thomson Reuters/University of Michigan preliminary consumer sentiment index climbed to 92.1 in October from a final reading of 87.2 in September, missing expectations for an increase to 89.0.
"The rebound in confidence signifies that consumers have concluded that the fears expressed on Wall Street did not extend to Main Street. Importantly, the renewed confidence did not simply represent a relief rally, but instead reflected renewed optimism," the Surveys of Consumers chief economist at the University of Michigan Richard Curtin said.
He added that the consumption is expected to climb 2.9% during 2016.
The rise in the index was driven by increases in the index of current economic conditions and the index of consumer expectations.
The index of current economic conditions increased to 106.7 in October from 101.2 in September, while the index of consumer expectations rose to 82.7 from 78.2.
The one-year inflation expectations fell to 2.7% in October from 2.8% in September.