U.S. consumer confidence rises to three-year high in February

The U.S. consumers' confidence continued to rise in February 2011 to a three-year high after a rally in January, fresh evidence of an ongoing economic recovery, the Conference Board announced Tuesday in a report.


The Consumer Confidence Index increased in February to 70.4 from a revised 64.8 in January 2011, as consumers' short-term outlook became more optimistic, according to the report.


Economists watch this report closely, as consumer spending accounts for about 70 percent of U.S. economic activity and is critical to a robust economic revival.


"Looking ahead, consumers are more positive about the economy and their income prospects, but feel somewhat mixed about employment conditions," said Lynn Franco, director of the Conference Board Consumer Research Center.


"Consumers' assessment of current business and labor market conditions has improved moderately, but still remains rather week, " Franco added.


The U.S. unemployment rate dropped to 9 percent in January 2011, the lowest level in nearly two years. However, the nonfarm payroll increased only by a meager gain of 36,000 last month across the nation, the fewest in four months and far less than economists' prediction.


The monthly survey is based on a representative sample of 5,000 U.S. households. It takes a reading of 90 to indicate a healthy economy.
(Source:http://news.xinhuanet.com)