US consumer confidence at highest since 2000, Conference Board says

US consumer confidence shot higher in October, led by a particularly large improvement in expectations, reaching its highest level since 2000, the results of a widely-followed survey showed.

The Conference Board's monthly sentiment gauge rose from a reading of 120.6 for September to 125.9 in October, easily surpassing forecasts for a reading of 121.0.

A subindex of consumer expectations saw the biggest rise, rising from a reading of 103.0 to 109.1, while another tracking how Americans perceive the 'current situation' advanced from 146.9 to 151.1.

According to Conference Board director Lynn Franco, better assessments of the labour market - which received the most favourable ratings since summer 2001 - were the chief reason for the improvement observed.

"Consumers were also considerably more upbeat about the short-term outlook, with the prospect of improving business conditions as the primary driver. Confidence remains high among consumers, and their expectations suggest the economy will continue expanding at a solid pace for the remainder of the year."