US consumer sentiment rose unexpectedly in early November as a rebound in stocks helped Americans to shrug off deteriorating economic conditions since September 11th, market sources said today.
The University of Michigan's preliminary November consumer sentiment index rose to 83.5 from 82.7 in October. That stood in sharp contrast to analysts' forecasts for a fall to 78.7 and a steep drop in the Conference Board's October consumer confidence index.
Economists and policymakers closely watch consumer confidence, mostly on a downward trend since late last year, for its link to consumer spending, which underpins about two-thirds of US economic activity.
The current conditions index, which gauges Americans' views on their present financial situation, rose to 94.9 in November from 94.0 in October. And the expectations index, which tracks consumers' attitudes about the coming year, edged up to 76.2 in November from 75.5 in October.
The preliminary consumer sentiment survey is based on telephone interviews with 250 Americans across the country on personal finances, business conditions and buying conditions. The survey is updated later in the month. The survey, conducted since 1946, is released directly to subscribers.