WASHINGTON, Feb 28 (AFP): US consumer confidence leapt to a 17-year record in February, driven higher by strong expectations that jobs will remain plentiful in the near-term, according to a survey released Tuesday.
Consumers' outlook about the future was also rosier, with more expecting their incomes to rise in the coming months, according to the Conference Board.
The results could point to strong consumer spending in the early months of 2018, helping support continued GDP expansion.
The consumer confidence index jumped more than six points to 130.8, its highest level since November of 2000, well beyond analyst expectations, which called for only a 2.2 per centage point gain.
"Despite the recent stock market volatility, consumers expressed greater optimism about short-term prospects for business and labor market conditions, as well as their financial prospects," Lynn Franco, the Conference Board's head of economic indicators, said in a statement.
"Overall, consumers remain quite confident that the economy will continue expanding at a strong pace in the months ahead."
The share of survey respondents saying business conditions were "bad" fell 2.2 per centage points to 10.8 per cent, while those saying jobs were "plentiful" jumped 2.2 points to 39.4 per cent.
Consumers expecting business conditions to improve over the next six months gained 4.3 points to reach 25.8 per cent and those expecting higher incomes in the months ahead rose to 23.8 per cent, up 3.2 per centage points.
With US unemployment at historic lows and expected to fall further, employers are struggling to fill open positions and some are beginning to increase wages.
Corporations have also attracted publicity by announcing employee bonuses tied to December's sweeping corporate tax cuts. Economists however warn this does not mean workers will primarily benefit.
US consumer confidence soars to 17-year record
FE Team | Published: March 01, 2018 00:42:48
US consumer confidence soars to 17-year record
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