US consumer confidence rebounded in October after September's slump, a good sign for the upcoming shopping season, the Conference Board said today.
The US consumer confidence index rose to 94.5 last month from 89 in September. The present situation component of the index edged up to 93.7 from 93.
The expectations component, measuring consumers' outlook six months ahead, jumped to 95 from 86.4 in September.
"Looking ahead, consumers have regained confidence in the short-term outlook for the economy and labour market, and are more optimistic about their future earnings potential," said Lynn Franco, director of economic indicators at The Conference Board.
With the holiday season around the corner, this boost in confidence should be a welcome sign for retailers," she added.
The September jump in confidence was much stronger than analysts expected, with the consensus prediction for an 87.2 reading.
Meanwhile, the rise in US home prices slowed in August but was still up 5.6% year-on-year, the S&P/Case-Shiller index showed today.
The 20-city price index rose 0.2% from July to August, with the biggest drag coming from the West Coast market.
Prices in San Francisco were off 0.4% in the month, in San Diego down 0.1%, and flat in Seattle and Los Angeles.
Monthly gains were strongest in the heavily depressed Detroit, Michigan market, as the city begins efforts to pull out of bankruptcy.
Analysts said the slowdown in price gains represents more a normalisation of the market after the rebound from the 2008-2009 recession, and that buying remains fairly steady.