Consumer Confidence Highest Since May 2010

Consumer confidence rose in January after a dip in December, indicating consumers are feeling better about the economy, according to the latest reading of the Conference Board Consumer Confidence Index.

The index now stands at 60.6 on a scale of 100, up from 53.3 in December and the highest since May, when the index was at 62.7. January improvement was better than expected, but still far from the 90 that signals that consumers no longer are worried about what the future may bring.

“Consumers have begun the year in better spirits,” said Lynn Franco, director of the Conference Board Consumer Research Center.

“As a result, the index is now near levels not seen since last spring,” Franco added. “Consumers rated business and labor market conditions more favorably and expressed greater confidence that the economy will continue to expand and generate more jobs in the months ahead. Income expectations are also more positive. Although pessimists still outnumber optimists, the gap has narrowed.”