The Consumer Confidence Index rose in June to 118.9, despite expectations for it to drop, The Conference Board announced Tuesday.
Economists were expecting the index to drop slightly to 116 for the month of June, according to Thomson Reuters consensus estimates.
Last month, the index dipped to 117.9, down from its April reading, The Conference Board said.
Consumer expectations improved to a nearly 16-year high, according to Director of Economic Indicators at The Conference Board Lynn Franco.
"Expectations for the short-term have eased somewhat, but are still upbeat. Overall, consumers anticipate the economy will continue expanding in the months ahead, but they do not foresee the pace of growth accelerating," said Franco.
Those individuals saying business conditions are "good" increased to 30.8 percent from 29.8 percent, while those saying business conditions are "bad" declined to 12.7 percent from 13.9 percent, the Conference Board said.
Consumer's expectations for the labor market were also positive, with those saying jobs are "plentiful" rising to 32.8 percent from 30 percent, and those claiming jobs are "hard to get" dipping slightly to 18 percent from 18.3 percent.
For the short-term outlook, consumers were less optimistic. Those expecting business conditions to improve over the next six months decreased to 20.4 percent from 21.5 percent. However, those expecting business conditions to worsen declined marginally to 9.9 percent from 10.3 percent.
This monthly Consumer Confidence Survey is conducted for The Conference Board by Nielsen.