US consumer confidence rises sharply

Consumer confidence in the United States, which had declined for four consecutive months, improved sharply in April, helped by a swift outcome to the war in Iraq.

The Consumer Confidence Index rose to 81.0 from a revised 61.4 in March, the New York-based Conference Board said today. The increase was far better than the reading of 70 that analysts had expected.

“The swift outcome in the Middle East has helped quell consumers’ short-term concerns,” said Lynn Franco, director of The Conference Board’s Consumer Research Centre.

The results are from a partial sample of at least 2,500 respondents and are subject to revision once the full sample – typically 3,500 households – is in.

Economists closely track consumer confidence because consumer spending accounts for two-thirds of US economic activity, and consumer spending has propped up the economy since the country dipped into recession in 2001.