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Consumers' attitudes to current conditions in the U.S. jumped in March, according to a monthly survey out on Tuesday.
The Consumer Confidence Index hit 125.6 in March according to data from The Conference Board, its highest level since December 2000.
Economists expected the Conference Board's consumer confidence index to hit 114 in March, according to a consensus estimate from Reuters.
"Consumers' assessment of current business and labor market conditions improved considerably," Lynn Franco, director of economic indicators at The Conference Board, said in a statement on Tuesday.
"Consumers' also expressed much greater optimism regarding the short-term outlook for business, jobs and personal income prospects. Thus, consumers feel current economic conditions have improved over the recent period, and their renewed optimism suggests the possibility of some upside to the prospects for economic growth in the coming months," Franco said.
The survey also found that those saying business conditions are "good" rose to 32.2 percent from 28.2 percent. Those saying business conditions are "bad" fell to 12.9 percent from 13.4 percent.
Their outlook for the labor market was also more upbeat, according to the report.
The survey, a closely followed barometer of consumer attitudes, measures confidence toward business conditions, short-term outlook, personal finances and jobs.