US consumer confidence rose to a 3-yr high in June, buoyed by a more optimistic view of the labor market.
The Conference Board said its gauge of sentiment rose nearly three points to 105.8 from a revised 103.1 in May. Analysts on average had expected a rise to 104.0 in June.
The improved confidence index came as consumers felt more optimistic about the US labor market. The proportion of consumers saying jobs were "hard to get" in the Conference Board survey declined to 22.6% from 24.1%.
Consumer spending is the backbone of the U.S. economy, accounting for two-thirds of overall activity, and changes in confidence are seen as a possible precursor to stronger growth.
The Conference Board's confidence index present situation reading rose to 120.7 from 117.8 while its expectations index measure rose to 95.8 from 93.4.
The dollar rose against the euro after the report to $1.2084 at 10:19 a.m. in New York from $1.2164 late yesterday, according to electronic foreign exchange trading system.
