NEW YORK — U.S. consumer sentiment rebounded for the first time in four months as gasoline prices eased.
The Conference Board's consumer confidence index rose to 91.7 in October from 84.2 in September, a gain of 7.5 points and the highest reading since June, the U.S. business research group said on the 27th. The index is based on 1985 equaling 100. The result far exceeded the 81 expected by analysts polled by Dow Jones.
The present situation index, which reflects current business and labor market conditions, climbed 8.6 points to 120.4. The expectations index, which measures the short-term outlook, rose 6.9 points to 72.6, turning higher for the first time in four months. Fergus McCormick, senior economist at the Conference Board, said the recovery was linked to the decline in retail gasoline prices in September and October, adding that the index nonetheless remained within the range of a multiyear downtrend.
The average price of regular gasoline in the U.S. stood at $4.27 a gallon as of the 27th, down from $4.48 a month earlier, according to the American Automobile Association. That is still well above the $3.05 recorded a year earlier. McCormick said consumers plan to cut spending on services and durable goods over the next six months, a shift he attributed to high price levels and persistent inflation.