A key gauge of the future direction of the U.S. economy rose 0.9 percent in October, offsetting the large decrease in September, the New-York based Conference Board said Monday.

The Conference Board said its index of leading indicators rose to 137.9 in October after a downwardly revised 0.8 percent decline in September.

"The leading index increased sharply in October offsetting the large decrease in September, which partly reflects the economic impact of the hurricanes which hit the Gulf region in late August and September. In addition, October's increase was widespread among the leading indicators," the board said in a statement.

Two of the 10 components of the index fell in October — building permits and stock prices. The largest positive contributors to the leading index were an inverted measure of initial jobless claims and average weekly hours in manufacturing.

The coincident index, a measure of current economic activity, rose 0.1 percent to 120.7 in October, after a 0.3 percent rise in September. The lagging index rose 0.8 percent to 121.2, after a 0.2 percent decline in September.