A measure of consumer confidence has rebounded to its highest level in more than two years on more optimistic assessments of business and labor conditions.

The Conference Board reported its Consumer Confidence Index rose 6.8 points between December and January to 114.8. With increases in each of the last three months, the reading climbed to its highest level since December 2021.Components of the index tracking current conditions and short-term expectations both increased.

“January’s increase in consumer confidence likely reflected slower inflation, anticipation of lower interest rates ahead and generally favorable employment conditions as companies continue to hoard labor,” said Dana Peterson, chief economist of the Conference Board.

The New York-based think tank bases the index on the results of monthly household surveys.

Peterson said confidence increased across all ages and all income groups, except for households earning more than $125,000 a year. The perceived likelihood of recession within the next year eased, as did expectations interest rates will move higher.

For January, more upbeat assessments of current conditions pushed up the present situation component of the index 14.1 points to 161.3.

The portion of consumers responding to the survey upon which the January index was based who called business conditions good rose 1.4 points to 22.5 percent. The share of those who called business conditions bad fell three points to 14.2 percent.

The proportion of consumers who said jobs were plentiful rose 5.1 points to 45.5 percent. The share of those who said jobs were hard to get fell 3.3 points to 9.8 percent.

More optimistic outlooks for the next six months pushed up the expectations component of the index 1.9 points to 83.8 — above the level associated with an impending recession.

The share of consumers who said they expected business conditions to improve over the next six months fell 2.1 points to 16.6 percent. The proportion of those who anticipated worsening conditions also fell — 1.8 points to 16 percent.

The share of consumers who said they expect more jobs to become available fell 1.6 points to 16 percent. But the proportion of those who expected fewer jobs fell more — 3.1 points to 15.3 percent.

While 16.4 percent of consumer said they expect their incomes to increase, 11.5 percent expected decreased incomes.