US consumer confidence surged in January to its highest level in more than seven years, the Conference Board said Tuesday.
The consumer confidence index jumped to 102.9, following a rise to 93.1 in December, as views on current conditions and their expectations both improved.
“Consumers also expressed a considerably higher degree of optimism regarding the short-term outlook for the economy and labor market, as well as their earnings,” said Lynn Franco, the Conference Board’s director of indicators.
In January, consumers, whose spending accounts for about 70 percent of US economic output, had a more positive assessment of current business and job market conditions, pushing the present situation sub-index up to 112.6 from 99.9 in December.
The sub-index on the outlook over the next six months rose to 96.4 from 88.5.
As for their earnings, about 20 percent of consumers surveyed expected an increase, compared with 16.2 percent last month.