NEW YORK – U.S. consumer sentiment rose more than expected in October, a preliminary report showed on Friday, as consumers' view of both future and current conditions improved.
The University of Michigan's preliminary reading on consumer sentiment in October was 92.3, up from September's final reading of 85.4, said sources who saw the subscription-only report.
The median forecast of Wall Street economists polled by Reuters was for the index to read 86.5.
The survey's index of current conditions jumped to 106.1 on a preliminary basis in October from 96.6 in September, while consumer expectations climbed to 83.4 from 78.2.
Consumer spending accounts for about two-thirds of U.S. economic activity, but in recent years confidence measures have been a weak guide to actual spending.
Consumers' expectations for increased inflation were mixed in October, the report said, according to the sources.
The University of Michigan's preliminary October reading on one-year U.S. inflation expectations was 2.9 percent, down from 3.1 percent in September.
Median expectations for inflation over a five-year horizon edged higher to 3.1 percent in October from 3.0 percent in September.