WASHINGTON (MarketWatch) — Consumers ended October the perkiest they’ve been in more than seven years, thanks to rosier economic expectations, according to a report released Friday.

The final October reading on the University of Michigan/Thomson Reuters consumer-sentiment index rose to 86.9 — the highest reading since July 2007 — from a final September level of 84.6. For context, the consumer-sentiment gauge averaged 86.9 over the year leading up to the recession.

“Consumers have not overreacted to the negative news of a global slowdown or Ebola nor to the positive news of lower gas prices,” said Richard Curtin, the survey’s chief economist. “Instead, consumers have kept their focus on improved job and wage prospects.”

The final result pushed past expectations from economists polled by MarketWatch, who had forecast a final October reading of 86.4, matching a preliminary level for the month.

Economists follow readings on confidence to look for clues about consumer spending, the backbone of the economy. Earlier Friday, the government reported consumer spending fell last month, the first drop since January, as households cut outlays on vehicles and gas. The drop surprised economists, who had expected that consumers slightly bumped up spending last month.

But less spending on gas could be good news for discretionary purchases through the end of the year, as families can use their energy savings for fun and travel.

“Pump price relief is a big plus,” said Chris Christopher Jr., U.S. consumer economics director at IHS Global Insight. “Elevated levels of consumer confidence are a plus for consumer spending on durables and clothing. So, the recent consumer confidence gains are likely to assist fourth quarter retail sales.”

And there are further reasons for optimism about consumer spending: If the economy keeps adding jobs at a healthy rate, that could further support purchases. Workers are quitting their jobs with increasing frequency — a sign that employees are increasingly confident in their personal finances and the economy’s strength. However, real wages have been showing weak growth, with a recent gauge of workers’ earnings just matching what workers took home near the start of the recession.

Friday’s sentiment report showed a gauge of consumers’ economic expectations rose to 79.6 at the end of October from a final September reading of 75.4. Meanwhile, a barometer of their views on current conditions declined to 98.3 from 98.9.

Friday’s data echoed a separate reading on consumers’ moods, which showed that confidence in October rose to a seven-year peak, thanks to a firming labor market.