The consumer confidence index gained to 94.5 in October from a revised 89.0 last month, The Conference Board reported Tuesday.
The September index was originally reported as 86.0.
The present situation index rose to 93.7 from a revised 93.0, first reported as 89.4, while the expectations index soared to 95.0 from a revised 86.4, first reported as 83.7.
Economists polled by Thomson Reuters predicted an 87.0 reading for the index.
"Consumer confidence, which had declined in September, rebounded in October," said Lynn Franco, director of The Conference Board's Consumer Research Center. "A more favorable assessment of the current job market and business conditions contributed to the improvement in consumers' view of the present situation. Looking ahead, consumers have regained confidence in the short-term outlook for the economy and labor market, and are more optimistic about their future earnings potential. With the holiday season around the corner, this boost in confidence should be a welcome sign for retailers."
Business conditions were called "good" by 24.5% of respondents in October, up from 24.2% in September. Those saying conditions are "bad" rose to 21.7% from 21.2%.
The percentage of consumers expecting a pickup in business conditions in the next half year climbed to 19.6% from 19.0%, while 9.3% said they expect conditions to worsen, down from 11.4% in the prior month.
On the jobs front, those who believe jobs are "plentiful" crept to 16.5% in October from 16.3% in September, while the number saying jobs are "hard to get" dipped to 29.1% from 29.4%. The respondents who see fewer jobs becoming available in a half year, decreased to 13.9% from 16.9%. Those expecting more jobs to become available rose to 16.8% from 16.0%, The Conference Board reported.
The consumer confidence survey is based on a probability design random sample by the Nielsen Company.
