RJ and Makay

U.S. consumer sentiment is at its highest point in three years, suggests the latest reading of the Consumer Confidence Index (CCI). The CCI rose to 70.4 this month, up from 64.8 in January as Americans expressed more optimism about their earning potential and the direction of the economy. It's the strongest CCI reading since the early days of the latest recession in 2008.

Several factors are helping to boost consumer sentiment such as a robust stock market, falling unemployment, and rising incomes. "Since November there has been a gradual improvement in the consumer mood, but it's not happy days are here again," warns economist Chris Christopher of IHS Global Insight. "Household net worth is still about $10 trillion below its peak, and with what's going on in the housing market, it doesn't look like that's going to improve anytime soon."

The U.S. Consumer Confidence Index (CCI), a commonly used gauge of consumer sentiment about the economy, rose in the first couple weeks of February to its highest level since last June. The CCI now stands at 75.1, up almost a full point from 74.2 at the end of January and more than 22 points from June 2010's level of 52.9.

Notably, economists polled by MarketWatch were accurate in their prediction for mid-February, which called for CCI of 75.

The Conference Board Consumer Confidence Index (CCI), a widely accepted measure of consumer sentiment about the economy, is up nearly 14% since December to 60.6 — its highest level in eight months. The increase put the CCI well above the 54.3 level economists predicted for January.

The sharp spike in consumer sentiment is in line with other data indicating an improved economy. "The recovery in stock prices and the beginnings of an improvement in the labor market are making people feel better about the economy," says Ian Shepherdson, chief U.S. economist at High Frequency Economics in Valhalla, New York.