Investing.com - Confidence among U.S consumers rose in October, marking its highest level in 18 years, according to data released on Tuesday.
The Conference Board's index of consumer confidence increased to 137.9 this month, compared to a reading of 136.00 forecast by economists. That was its highest level since September 2000.
The measure had climbed to 135.3 in the previous month, despite a downward revision from an initial 138.4
The index looks at U.S. consumer’s views of current economic conditions and their expectations for the next six months. The index is closely watched by economists because consumer spending accounts for about 70% of U.S. economic activity.
The Present Situation Index improved from 169.4 to 172.8, while the Expectations Index increased from 112.5 last month to 114.6 this month.
The cutoff date for the preliminary results was October 18.
Lynn Franco, director of economic indicators at The Conference Board, indicated that consumers’ assessment of present-day conditions remained quite positive and attributed that perception primarily to strong employment growth.
“The Expectations Index posted another gain in October, suggesting that consumers do not foresee the economy losing steam anytime soon,” she said. “Rather, they expect the strong pace of growth to carry over into early 2019.”