Economic Report: Consumer sentiment surges to 13-year high in October

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Consumers have their eyes on the prize

The numbers: The University of Michigan said its consumer sentiment index climbed to a 13-year high of 101.1 in October from 95.1 in September, topping the MarketWatch-compiled consensus of 95.

There were big gains in both the index for current economic conditions, which rose to 116.4 from 11.7, and expectations, which rose to 91.3 from 84.4.

What happened: The economic expansion, after eight years, is finally being noticed. With low unemployment and low inflation, consumers are not necessarily thrilled but content with modest income gains.

The big picture: Consumers are content. But they’re not ecstatic. According to the surveys of consumers chief economist, Richard Curtin, the “as good as its gets” outlook is supported by a “moderation in the expected pace of growth in both personal finances and the overall economy, accompanied by a growing sense that, even with this moderation, it would still mean the continuation of good economic times.”

Also see: U.S. retail sales post biggest gain biggest since 2015

Market reaction: Though there’s wasn’t a huge move after the report, the Dow Jones Industrial Average

DJIA, +0.23%

 did notch a new record high.