A measure of US consumer confidence rose in October to an 18-year high amid optimism about jobs and the economy.

The Conference Board reported last week that its index of US consumer confidence rose to 137.9 in October, the highest level since September 2000. The report, coming amid the recent stock market sell-off, bodes well for continued gains in consumer spending which, during the third quarter, accelerated to the highest level since 2014.

A robust job market is underpinning household confidence as well as consumer spending, which makes up about 70 per cent of the economy.

The report adds to signs of contentment with the economy in the run-up to Tuesday’s US mid-term elections that will decide control of both the Senate and the House of Representatives.

In the meantime, consumer prices across the eurozone rose at their fastest rate in nearly six years in October, largely due to higher energy costs, official figures showed last week. According to statistics agency Eurostat, the headline measure of consumer price inflation rose by 2.2 per cent in the year to October, up from 2.1 per cent the previous month. This is the highest reading since December 2012, when inflation stood at 2.2 per cent. The last time inflation was higher was in October of that year, when it struck 2.5 per cent. With oil prices having come off near four-year highs in recent weeks, and with economic growth weakening, some economists are predicting that inflation may have peaked.

Finally in the UK, the Bank of England (BOE) kept its benchmark interest rate steady, with policymakers voting unanimously to hold rates at 0.75 per cent. Last August, the central bank raised interest rates by 25 basis points, the second time since the financial crisis. Despite the rosy economic scenario, the uncertainty surrounding Brexit seems to have hit business sentiment and could bring further volatility, the bank said in a statement.

This report was compiled by Bank of Valletta for general information purposes only.