October Consumer Sentiment Index Rises

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he University of Michigan said on Friday its index of consumer sentiment rose to 93.6 in October from 85.4 in September, its highest level since July 2005.

Preliminary estimates had shown the index at a level of 92.3 for September. Economists had expected an increase to 92.7, Bloomberg reported.

The index, which measures how consumers feel about the economy, gained on falling gasoline prices, which helped to soften the impact of a declining housing market, Bloomberg said.

The survey follows a report on Friday from the Department of Commerce that revealed gross domestic product growth slowed to a 1.6% annual rate in the third quarter.