U.S. consumer sentiment rebounds from two-year low in early November

U.S. consumer sentiment rebounded in early November from a two-year low level recorded in October as consumers raised their economic expectation.

The preliminary reading of the consumer sentiment for November rose to 91.6 from 87.2 in October, said the Thomson Reuters/University of Michigan index of consumer sentiment on Friday.

This is the highest level since mid 2016 and slightly above the 2016 average of 91.1. It is also better than the market expectation of 88.

"The recent gain in sentiment was driven by an improved outlook for the economy," said survey director Richard Curtin.

The sub-index of current conditions, reflecting Americans' perceptions of their financial situation and whether they consider it a good time to buy big-ticket items like cars, rose to 105.9 from 103.2 last month.

The sub-index gauging consumer expectations for six months from now, which more closely projects the direction of consumer spending, increased to 82.5 from 76.8 in October.

"It may be viewed as added justification for next month's expected interest rate hike. The expected small increase in interest rates had little impact on favorable buying attitudes, and still supports a 2.5 percent increase in real consumer spending during 2017, "said Curtin.