U.S. consumer confidence improves in October

The index of U.S. consumer confidence rose to 113.8 in October from a revised 109.8 in September.

The index has risen in October for the first time in four months, since June to 113.8 as concerns around the delta variant eased.

The Conference Board’s index advanced to 113.8 from an upwardly revised 109.8 reading in September, according to the group’s report Tuesday. Economists had forecast a decline to 108. Plans to buy cars, homes, appliances and vacations rose as well.

Consumer spending represents about 70% of all economic activity in the U.S., so economists pay close attention to the figures for a better understanding of the future track of the national economy.

In addition to the delta variant, consumer concerns about inflation had dragged confidence lower. Consumers’ view about both the present situation and future expectations both rebounded in October.