U.S. consumer confidence at 7-month high

Americans' confidence in the economy jumped this month to the highest level since February, bolstered by a brighter outlook for overall business conditions and hiring.

The Conference Board said Tuesday its Consumer Confidence Index rose to 70.3. That's up from 61.3 in August, which was revised higher.

And it's the highest reading since February, when employers added 259,000 jobs and many thought the recovery was strengthening.

The survey is watched closely because consumer spending drives nearly 70 percent of economic activity. The reading is still below 90, a level that indicates a healthy economy. The index hasn't been that high since December 2007.

Consumer confidence has fluctuated sharply this year, and hit a low for the year in August.

The latest increase could be a positive sign for President Barack Obama, who is facing re-election at a time when the economy is the top issue on most voters' minds.

The survey showed consumers were more optimistic about the current availability of jobs and their outlook over the next six months. Their confidence in the job market is higher, even though employers added just 96,000 jobs in August -- too few to keep up with population growth.

"Consumers see the economy moving ahead," said Lynn Franco, director of economic indicators at The Conference Board. But she cautioned that the index is volatile.