Confidence among U.S. consumers rose surprisingly in October, reaching the highest level since December 2007, a sign that retailers may see sales improvement soon. U.S. consumer sentiment jumped to a seasonally adjusted 83.1, up from 78.3 in the prior month, beating analysts' expectations of a fall to 78.0.
"People expect the economy is going to be healthier next year, they expect their job prospects to get better and they even expect their income to be a little better," Christopher Low, chief economist at FTN Financial in New York, said before the report. "People do seem to be comfortable saving a little less and spending a little more."