The consumer confidence index grew to 102.9 in January from a revised 93.1 last month, The Conference Board reported Tuesday.
The December index was originally reported as 92.6.
Economists polled by Thomson Reuters predicted a 95.0 reading for the index.
The present situation index gained to 112.6 from a revised 99.9, first reported as 98.6, while the expectations index grew to 96.4 from an unrevised 88.5.
"Consumer confidence rose sharply in January, and is now at its highest level since August 2007 (Index, 105.6). A more positive assessment of current business and labor market conditions contributed to the improvement in consumers' view of the present situation. Consumers also expressed a considerably higher degree of optimism regarding the short-term outlook for the economy and labor market, as well as their earnings," said Lynn Franco, director of The Conference Board's Consumer Research Center.
Business conditions were called "good" by 28.1% of respondents in January, up from 24.7% in December. Those saying conditions are "bad" slid to 16.8% from 18.9%.
The percentage of consumers expecting a pickup in business conditions in the next half year increased to 18.4% from 17.8%, while 7.7% said they expect conditions to worsen, down from 9.9% in the prior month.
On the jobs front, those who believe jobs are "plentiful" grew to 20.5% in January from 17.2% in December, while the number saying jobs are "hard to get" fell to 25.7% from 27.3%. The respondents who see fewer jobs becoming available in a half year, decreased to 15.0% from 16.5%. Those expecting more jobs to become available rose to 16.7% from 14.6%, The Conference Board reported.
The consumer confidence survey is based on a probability design random sample by the Nielsen Company.
