By Ruth Mantell, MarketWatch
WASHINGTON (MarketWatch) — Consumer sentiment has jumped up for a second month, pushing past analysts’ expectations to stand at the highest level in more than five years, according to data released Friday.
The University of Michigan-Thomson Reuters consumer-sentiment gauge rose to 83.1 in a preliminary October reading — the highest level since September 2007 — from a final September reading of 78.3.
Economists polled by MarketWatch had expected little change, forecasting the index to decline to 78 in early October. See economic calendar.
According to the UMich data released Friday, a gauge of consumer expectations rose to 79.5 in early October from 73.5 in September, while the barometer of consumers’ views on current conditions increased to 88.6 from 85.7.
U.S. stocks got a pop after the data’s release, with the Dow Jones Industrial Average DJIA +0.42% up 58 points in mid-morning trade.
The sentiment gauge, which covers how consumers view their personal finances as well as business and buying conditions, averaged about 87 in the year before the most recent recession.
Economists watch sentiment data to get a feel for the direction of consumer spending.
Ruth Mantell is a MarketWatch reporter based in Washington.
