US consumer confidence shows recovery

US consumer sentiment rose in early November from a nine-year low as stabilisation in the job market and stocks and an interest…

US consumer sentiment rose in early November from a nine-year low as stabilisation in the job market and stocks and an interest rate cut from the Federal Reserve lifted Americans' spirits.

The University of Michigan's preliminary November consumer sentiment index rose to 85 from a final 80.6 in October, putting a halt to a five-month slide in sentiment and beat forecasts for a rise to 82.3.

The gain was led by the expectations index, which tracks attitudes about the 12 months ahead, which rose to 79.2 from 73.1. The preliminary current conditions index, which correlates more closely with spending, rose from a nine-year low to 93.8 in November from 92.4.

Consumer spending, which drives about two-thirds of the US economy, so far has remained robust, in part due to the lowest interest rates and mortgage rates in more than a generation.

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Retail sales excluding automobiles held up in October despite a five-month slide in consumer confidence.