Consumer confidence hits highest level since 2008

In January, the unemployment rate dropped to 9 percent from 9.4 percent although only 36,000 jobs were added. 

The economy grew less than expected in the fourth quarter, according to the Commerce Department on Friday. The report showed that the economy grew at a 2.8 percent rate in the fourth quarter, down from a prior estimate of 3.2 percent but up from 2.6 percent in the third quarter.

As the economy gradually improves, sentiment is moving along in step. Confidence could continue to climb, propelling spending, which represents about 70 percent of the economy, if high fuel costs don’t cut into the upbeat mood. 

In a separate report this week, the Bloomberg Consumer Comfort Index, formerly the ABC News U.S. Weekly Consumer Comfort Index, increased last week to the highest level since April 2008 as many were more upbeat about their finances. 

That index was minus 39.2 in the period to Feb. 20, compared with minus 43.4 the prior week, the Thursday report showed. Of those asked, 49 percent had positive views of their financial situation, the most in a year. 

Earlier this week, The Conference Board’s index of confidence increased to 70.4, the highest since February 2008, from 64.8 the prior month.

The gauge that measures whether consumers consider now a good time to buy big-ticket items like cars was up to 86.9 from 81.8 the prior month, according to today’s index.