Consumer Confidence, which had decreased in September, rebounded in October to a seven-year high, according to The Conference Board Consumer Confidence Index.
The Present Situation Index edged up from 93.0 to 93.7, while the Expectations Index increased sharply to 95.0 from 86.4 in September.
The monthly Consumer Confidence Survey, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a leading global provider of information and analytics around what consumers buy and watch.
"Consumer confidence, which had declined in September, rebounded in October," said Lynn Franco, Director of Economic Indicators at The Conference Board. "A more favorable assessment of the current job market and business conditions contributed to the improvement in consumers' view of the present situation."
Consumers' optimism towards the economy, which had declined considerably in September, also improved in October. The percentage of consumers expecting business conditions to improve over the next six months increased from 19.0 percent to 19.6 percent, while those expecting business conditions to worsen fell from 11.4 percent to 9.3 percent.
"Looking ahead, consumers have regained confidence in the short-term outlook for the economy and labor market, and are more optimistic about their future earnings potential," Franco continued. "With the holiday season around the corner, this boost in confidence should be a welcome sign for retailers."