Consumer Confidence Hits 3-Year High

Consumer confidence rose to a three-year high in February, according to the Thomson Reuters/University of Michigan consumer sentiment index released Friday.

The final index for the month rose to a 77.5 reading, from 74.2 in January.

The reading was higher economists’ forecasts, Bloomberg reported.

The index averaged a reading of 89 in the five years leading up to the recession at the end of 2007.

The reading released Friday is the final reading of the month, a revision of earlier reading.

An improvement in confidence may increase consumer spending, which accounts for 70% of the economy.