Consumer confidence snaps back in January

Consumer confidence rebounded in January amid growing trust in the U.S. labor market's strength.

The Consumer Confidence Index climbed by 3.4 points to 131.6, according to a preliminary reading released Tuesday, after a slight fall in December.

The Present Situation Index, which measures current business and labor market conditions, spiked to 175.3 from 170.5 and the Expectations Index, which looks at consumers' short-term outlook for business and job market conditions, rose to 102.5 from 100.

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The upbeat sentiments were “driven primarily by a more positive assessment of the current job market and increased optimism about future job prospects," Lynn Franco, director of economic indicators at The Conference Board, said in a statement. "Optimism about the labor market should continue to support confidence in the short-term and, as a result, consumers will continue driving growth and prevent the economy from slowing in early 2020."

The percentage of respondents who said jobs were "plentiful" jumped to 49 percent from 46.5 percent while those who said jobs were "hard to get" fell to 11.6 percent from 13 percent.

Meanwhile, those who reported business conditions were "good" rose to 40.8 percent from 39 percent while those who said they were "bad" fell to 10.4 percent from 11 percent.

President Trump took note of the improved confidence.

Progress on U.S trade agreements with China, Canada and Mexico during January may fuel an even brighter outlook in the months ahead. The Senate approved the U.S.-Mexico-Canada Agreement this month, after modifications by House Democrats, and President Trump signed an initial pact with Beijing after a prolonged dispute.