Investing.com - U.S. consumer confidence unexpectedly surged in March to its highest level in 16 years, bolstering optimism over the outlook for the consumption-driven economy, industry data showed on Tuesday.
In a report, the Conference Board, a market research group, said its index of consumer confidence jumped to 125.6 this month from a reading of 116.1 (revised from an initial 114.8) in February. That was its highest level since December 2000.
Analysts had expected the index to fall to 114.0 in February.
The Present Situation Index rose from 134.4 to 143.1 and the Expectations Index increased from 103.9 last month to 113.8.
“Consumers’ assessment of current business and labor market conditions improved considerably,” Lynn Franco, Director of Economic Indicators at The Conference Board, said.
“Consumers’ also expressed much greater optimism regarding the short-term outlook for business, jobs and personal income prospects”, Franco noted, adding that “consumers feel current economic conditions have improved over the recent period, and their renewed optimism suggests the possibility of some upside to the prospects for economic growth in the coming months.”
After the report, EUR/USD was trading at 1.0858 from around 1.0869 ahead of the publication; GBP/USD was at 1.2534 from 1.2550 earlier; while USD/JPY was at 110.40 from 110.22 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, traded at 99.03 compared to 98.93 prior to the release.
Meanwhile, U.S. stock markets were buoyed by the news, turning into positive territory. The Dow 30 gained 0.17%, the S&P 500 advanced 0.14%, while the Nasdaq Composite edged forward 0.06%.
Elsewhere, in the commodities market, gold futures traded at $1,255.35 a troy ounce, compared to $1,257.51 ahead of the data, while crude oil traded at $48.24 a barrel from $48.13 earlier.