US consumer confidence grows to its highest since May 2010

According to new stats from the Conference Board US consumer confidence increased more than expected this month to its highest level in 8 months since May 2010. The growth was supported by growing optimism about the economy and the jobs market.

The Conference Board says that its index of consumer attitudes jumped to 60.6 in January, the highest since May 2010, from an upwardly revised 53.3 in December.

Meantime, the expectations index rose to 80.3 in January, the highest since May, from 72.3 recorded last month. On the other hand consumers' expectations for inflation in the coming 12 months rose to the highest since July 2009.

The present situation index increased to 31.0, the highest since November 2008, from 24.9.

"Consumers rated business and labor market conditions more favorably and expressed greater confidence that the economy will continue to expand and generate more jobs in the months ahead," Lynn Franco, director of The Conference Board Consumer Research Center, said in a statement.

Consumers' labor market assessment improved. The "jobs hard to get" index declined to 43.4 percent in January from 46.0 percent last month, while the "jobs plentiful" index rose to 5.2 percent from 4.2 percent.

Yet economists say that challenges remain in the road to a stronger U.S. consumer.