Investing.com - Confidence among U.S consumers unexpectedly rose in August to its highest level in more than a decade, according to data released on Tuesday.
The Conference Board's index of consumer confidence increased to 133.4 this month, compared to a reading of 126.7 forecast by economists. That was its highest level since October 2000.
The measure had climbed to 127.9 in the previous month which was an upward revision from the initial reading of 127.4.
The Present Situation Index improved from 166.1 to 172.2, while the Expectations Index increased from 102.4 last month to 107.6 this month.
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 cutoff date for the preliminary results was Aug. 17.
Lynn Franco, director of economic indicators at The Conference Board, noted the improvements in the outlook across the board and highlighted that expectations, which had declined in June and July, bounced back in August and continue to suggest solid economic growth for the remainder of 2018.
“Overall, these historically high confidence levels should continue to support healthy consumer spending in the near-term,” Franco commented.