Sentiment among American consumers rose more than expected this month, boosted by expectations for low inflation and rising incomes, according to preliminary data released Friday by the University of Michigan.
Continue Reading Below
The October print on consumer sentiment climbed to a three-month high of 96 from September's 93.2, the new figures showed. The current economic conditions also rose to 113.4 from 108.5
Although there are some global uncertainties, such as the U.S.-China trade war and Brexit, that will keep consumers cautious when it comes to spending, the data overall indicates that consumer spending will be strong enough to offset weakness in business investment spending, helping to keep the record-long economic expansion alive.
Still, most consumers do expect to see a slowdown next year.
"A slower pace of overall economic growth is still anticipated, including some modest increases in the national unemployment rate during the year ahead," the report said.
Optimism about the possibility of a trade deal between the world's two largest economies also rose this week, when top diplomats met in Washington, D.C. for negotiations.
President Trump, who will have a key meeting with Chinese Vice Premier Liu He on Friday, said "good things" are happening at the talks, noting there are "warmer feelings than in recent past."