The consumer confidence index increased to 125.6 in March from a revised 116.1 last month, The Conference Board reported Tuesday.
The February index was originally reported as 114.8.
Economists polled by Thomson Reuters predicted a 113.9 reading for the index.
The present situation index rose to 143.1 from a revised 134.4, first reported as 133.4, while the expectations index climbed to 113.8 from a revised 103.9, first reported as 102.4.
"Consumer confidence increased sharply in March to its highest level since December 2000 (Index, 128.6)," said Lynn Franco, director of economic indicators for The Conference Board. "Consumers' assessment of current business and labor market conditions improved considerably. Consumers also expressed much greater optimism regarding the short-term outlook for business, jobs and personal income prospects. Thus, consumers feel current economic conditions have improved over the recent period, and their renewed optimism suggests the possibility of some upside to the prospects for economic growth in the coming months."
Business conditions were called "good" by 32.2% of respondents in March, up from 28.3% of respondents in February. Those saying conditions are "bad" fell to 12.9% from 13.4%.
The percentage of consumers expecting a pickup in business conditions in the next half year rose to 27.1% from 23.9%, while 8.4% said they expect conditions to worsen, down from 10.5% in the prior month.
On the jobs front, those who believe jobs are "plentiful" grew to 31.7% in March from 26.9% in February, while the number saying jobs are "hard to get" fell to 19.5% from 19.9%. The respondents who see fewer jobs becoming available in a half year, dipped to 12.2% from 13.6%. Those expecting more jobs to become available gained to 24.8% from 20.9%, The Conference Board reported.
The consumer confidence survey is based on a probability design random sample by the Nielsen Company.
