Consumer Confidence Index Hits Two-Year High in July

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he Conference Board said Tuesday its consumer confidence rose to 106.1 in July, the highest level since June 2002, from a revised 102.8 in June.

"The spring turnaround has been fueled by gains in employment, and unless the job market sours, consumer confidence should continue to post solid numbers," Lynn Franco, director of the board’s Consumer Re-search Center, said in a statement.

An increase in expectations for the economy over the next six months boosted the index, as the percentage of consumers who said jobs would be hard to find fell to the lowest since October 2000.

The index is a prognosticator of consumer spending. When people are feeling confident about the economy, they are more likely to spend money, which increases the demand for trucking services.

The index was expected to rise to 102, Bloomberg reported. The Conference Board surveys 5,000 house-holds about general economic conditions, employment prospects and spending plans.

The index component that tracks consumer expectations for the next six months jumped to 105.8, the high-est since December, from 100.8 in June. A gauge of optimism about the present situation rose to 106.5 this month, the highest since May 2002, from 105.9.

The percentage of consumers that see business conditions in the current month as "good" was little changed, falling to 25.6 from 25.8 in June, the board said.

The survey also found the percentage of people reporting jobs are "plentiful" rose to 19.8, the highest since 20.1 in June 2002. The percentage that expects fewer jobs six months from now fell to 13.1, the lowest in almost four years.