Consumer confidence in the U.S. is soaring yet again, reaching a 17-year high this month, according to the latest Consumer Confidence Index survey.
The Conference Board’s latest survey of consumer confidence notes that consumer confidence rose to 129.5, its highest point since the index climbed to 132.6 in November 2000.
Last month’s consumer confidence index already broke records, when the index for October increased to 125.9—the highest it had been since December 2000.
The latest numbers have defied economists’ expectations, with many predicting that the index would go down to 124.
“Consumer confidence increased for a fifth consecutive month and remains at a 17-year high,” Lynn Franco, director of Economic Indicators at The Conference Board, told CNBC.
Franco predicts that the reason for the increase may have to do with consumers’ optimism about the economy’s expansion around the holiday season.
“Consumers are entering the holiday season in very high spirits and foresee the economy expanding at a healthy pace into the early months of 2018,” Franco said.
The index measures American consumers’ attitudes about the economy and their predictions of how it will fare during the next six months.
Economists keep a watchful eye on this survey because consumer spending makes up 70 percent of economic activity in the U.S.