Consumer confidence rises

Photo by: Gene J. Puskar

ASSOCIATED PRESS

Photo

In this Feb. 14, 2011 photo, a shopper carries her purchases in the Shadyside section of Pittsburgh. The Consumer Confidence Index rose in February to its highest point in three years as consumers are feeling more positive about their income prospects and the direction the economy is headed.

Associated Press

NEW YORK

Americans are feeling more chipper about the economy than they have in three years.

The Consumer Confidence Index rose to 70.4 this month, up from 64.8 in January, as Americans expressed more optimism about their income prospects and the direction the economy is headed, a private research group reported Tuesday.

It’s the strongest reading since the early days of the most-severe recession the U.S. has seen since the 1930s.

A robust stock market and falling unemployment are lifting Americans’ spirits in spite of rising food and energy prices and a still-weak housing sector. In addition, a cut to the Social Security tax meant Americans started seeing more money in their paychecks in January, which may be boosting consumer spending.

Retailers including Macy’s Inc., Home Depot Inc. and VF Corp., maker of Lee jeans and Vans shoes, reported better-than-expected earnings Tuesday.