WASHINGTON - An index of U.S. consumer confidence rose in November to the highest level since June, with consumers more optimistic about future business conditions and job prospects, the Conference Board reported Tuesday.
The index rose to 54.1; economists polled by MarketWatch had expected a reading of 53. Confidence for October was revised to 49.9 from a prior estimate of 50.2.
"Hopefully, the improvement in consumers' mood will continue in the months ahead," said Lynn Franco, director of Conference Board's consumer research center, in a statement.
The Conference Board's index helps analysts compare fluctuations in confidence, with a reading of 100 for the base year of 1985. Generally when the economy is growing at a good clip, confidence readings are at 90 and above.
A barometer of consumers' expectations rose to 74.2 in November -- the highest level since May -- from 67.5 in October. In November, 16.7 percent of consumers said they expect business conditions to be "better" in six months, up from 15.8 percent in October. Most consumers expect business conditions to be the same. Also, 18.8 percent of consumers expect there be to fewer jobs, down from 22.3 percent in the prior month. Most consumers expect the same number of jobs.
Consumer confidence is "exceptionally depressed," reflecting labor-market weakness, wrote Dan Greenhaus, chief economic strategist with Miller Tabak, in a research note.
"It is hard to envision a sustained pickup in expectations without a commensurate move lower in the unemployment rate," Greenhaus wrote.
While economists say the recession officially ended last year, the labor market remains weak. On Friday, the government will report nonfarm payrolls for November. Economists polled by MarketWatch expect a gain of 155,000 jobs and for the unemployment rate to remain at a high 9.6 percent.
