Consumer sentiment beats expectations in October

That’s especially good news considering the run of slow growth in recent months.

Economists estimate that the preliminary consumer sentiment index for October was 89, according to Bloomberg.

The current economic conditions index jumped to 106.7 in October from 101.2 in September, while the index of consumer expectations climbed to 82.7 from 78.2. A confident consumer is more likely to dip into his wallet and buy things such as a new auto or refrigerator or a coveted dream vacation.

U.S. households also have been buoyed by cheaper gasoline prices since the end of a year ago.

But this may be an indication that the USA economy has truly turned a corner.

Views by consumers toward purchases of manufactured long lasting goods were bullish as well.

Economists follow readings on confidence to look for clues about consumer spending, the backbone of the economy.

“The rebound in confidence signifies that consumers have concluded that the fears expressed on Wall Street did not extend to Main Street”, said Richard Curtin, the survey’s chief economist. It has been dazzling spot in the USA economy as industry can shake under the attack of decreasing global growth and the resurgent dollar, as both the factors have gradually decreased demand for goods made in the US.

Consumer was more optimistic about personal financial expectations than at any time since 2007.

The consumer sentiment in the USA was able to bounce back strongly during the early part of October, suggesting the economic recovery had remained in place despite a few headwinds due to weak demand globally and a strong US dollar that have been weighing on the country’s industrial sector, in particular manufacturing. “Overall, the data still indicate that consumption will expand at 2.9% during 2016”.