RJ and Makay

Here's the sort of good news about the job market we've heard a lot over past couple months. Last week, new applications for state unemployment benefits fell by 16,000 to 385,000. The decline beat the predictions of economists, who thought initial jobless claims would drop to a seasonally adjusted 389,000 in the week ended March 12.

Furthermore, first-time claims for unemployment benefits averaged 386,250 in the past four weeks — the lowest level since July 2008. The four-week average is a more accurate measure of employment trends because it smoothes out weekly variation in jobless claims data.

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.