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Consumer sentiment beats expectations in October

Shopper looking at Michael Kors bags at Macy's in New York.
Scott Mlyn | CNBC
Shopper looking at Michael Kors bags at Macy's in New York.

U.S. consumer sentiment came in higher than expected in October, according to a report released on Friday.

The Thomson Reuters/University of Michigan's preliminary October reading on the index was 92.1. That was higher than the previous month's reading of 87.2 and Reuters' estimates for 89.

"The rebound in confidence signifies that consumers have concluded that the fears expressed on Wall Street did not extend to Main Street. Importantly, the renewed confidence did not simply represent a relief rally, but instead reflected renewed optimism," said Surveys of Consumers Chief Economist Richard Curtin in a statement.

According to the report, personal financial expectations rose to their highest level since 2007, as did consumers' views toward purchases of durable goods. Consumers anticipate a continued economic expansion, but also expect headwinds from low commodity prices and weakened global growth.

"Perhaps the most important finding is that low inflation and continued job growth have enabled consumers to adapt to a slower and more variable rate of economic growth by varying the pace of their spending without losing confidence that the expansion will continue," Curtin said.