U.S. consumer confidence rose in August to the highest level in close to two decades, according to data released Tuesday.
The Conference Board consumer confidence index rose to 133.4 in August, according to results released by the business research nonprofit Tuesday, the best mark since October 2000.
The group also reported an increase in its consumer expectations index, which measures optimism about the long-term state of the economy.
{mosads}“Expectations, which had declined in June and July, bounced back in August and continue to suggest solid economic growth for the remainder of 2018,” said Lynn Franco, director of economic indicators at The Conference Board.
“These historically high confidence levels should continue to support healthy consumer spending in the near-term.”
Analysts pay close attention to consumer confidence as a key forecasting tool given the massive portion of the U.S. economy dictated by consumer spending.
Confidence has steadily increased throughout the past two years amid near-record joblessness and accelerating economic growth and despite declining inflation-adjusted wages.