CHICAGO, Oct. 27 (Xinhua) -- The U.S. Consumer Sentiment Index was 100.7 in October, up from 95.1 in September and 87.2 last October, according to the University of Michigan (UM) Surveys of Consumers.
The Current Conditions Index was 116.5 in October, higher than 111.7 in September and 103.2 in last October, the highest level in 17 years. The Expectations Index rose to 90.5 in October, as against 84.4 in September and 76.8 in last October, the surveys show.
This is the second time for the Sentiment Index to stand above 100.0 since the end of the record 1990s expansion. UM economist Richard Curtin, director of the surveys, attributes the gain in October to the most favorable assessments of the financial situation of consumers since 2000.
Of all consumers surveyed, 53 percent reported improved finances in October, the highest proportion since the start of 2000, with majority of households pointing to gains in incomes and wealth as the reason behind it. .
Two-thirds of homeowners surveyed reported increases in their home's value; and the probability of stock gains in the future was judged the highest in more than a decade.
When asked about financial prospects for the year ahead, consumers remained optimistic, expecting an annual income gain of 2.1 percent in October, up from 1.7 percent in September and 1.5 percent in last October's survey.
Although accelerating gains in economic growth are not anticipated, 55 percent of consumers surveyed still expected good times in the economy as a whole during the year ahead, and more importantly, 51 percent of them anticipated the expansion would continue uninterrupted over the next five years.
This optimistic outlook was accompanied by nearly seven-in-10 consumers who anticipated small increases in interest rates during the year ahead. The unemployment rate was also anticipated to continue to inch downward during the year ahead.
The Surveys of Consumers is a rotating panel survey based on a nationally representative sample that gives each household in the coterminous U.S. an equal probability of being selected. Telephone interviews are conducted throughout the month.
