Consumer Confidence Hits Three-Year High

More good economic news:

Confidence among U.S. consumers rose in February to the highest level in three years as Americans became more optimistic about their incomes and the economy.

The Conference Board’s index of sentiment increased to 70.4, the highest since February 2008, from 64.8 the prior month, figures from the New York-based private research group showed today. Economists projected the gauge would be little changed at 65.5, according to the median forecast in a Bloomberg News survey.

A pickup in optimism and job gains may encourage Americans to increase purchases, bolstering consumer spending, the biggest part of the economy. At the same time, unemployment at 9 percent or higher for almost two years and mounting home foreclosures threaten to restrain households.

“The consumer believes that growth is picking up pace,” said Jonathan Basile, senior economist at Credit Suisse in New York, whose forecast of 70 for the index was the most accurate. “The ducks are in a row for stronger consumer spending this year.”

Posted by on February 22nd, 2011 at 11:10 am


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