Mubasher: A gauge for consumer confidence in the US rose in October to nearly a two-decade high.

The Conference Board (CB) consumer index rose to 137.9 points in October, compared with the downwardly revised 135.3 in September, the CB said on Tuesday. This marked the highest level seen since September 2000 when it reached 142.5 points.

Moreover, the present situation index rose to 172.8 points in October, from 169.4 in the previous month, indicating an improvement in assessment of the current economic conditions.

The expectation index, a measure for the short-term degree of consumer optimism, jumped to 144.6 during the month, from 112.5 in the prior month.

Responses seeing improvement in business conditions over the six months ahead went up 26.3% from 25.8%, while those expecting conditions to worsen declined to 7.4% from 8.3%.

Outlook for the labour market diverged somewhat, as the proportion of consumers anticipating more jobs in the upcoming months declined to 21.9% from 22.1%, while those expecting less jobs also edged down to 10.5% from 11.4%, the CB said.

In a separate report, the University of Michigan said that US consumer confidence cooled down slightly more than initially estimated earlier in October.