US consumer confidence unexpectedly rose in October despite mounting layoffs in the first report on sentiment to fully reflect the impact of the September 11th attacks, but the index remains well below levels seen this summer.
The University of Michigan's preliminary October consumer sentiment index rose to 83.4 in October from 81.8 in September, market sources said, driven by brightening expectations about the economy's prospects. Economists polled by Reuters had forecast a drop to 76.1.
Sources said the report would have included responses taken since the start of the US-led air strikes against Afghanistan last Sunday.
The rise, even as companies have stepped up layoffs, broke a three-month string of declines. In September the index registered its largest one-month drop since the outbreak of the Gulf War crisis in 1990.
Analysts said the US stock market's recovery in recent weeks buoyed consumer hopes. The expectations index, which tracks consumers' attitudes about the coming year, rose to 77.9 in October from 73.5 in September.