The Conference Board Consumer Confidence Index, which had increased in December, improved further in January.
The index now stands at 55.9, up from 53.6 in December. The Present Situation Index increased to 25 from 20.2, and the Expectations Index increased to 76.5 from 75.9.
"Consumer Confidence rose for the third consecutive month, primarily the result of an improvement in present-day conditions," said Lynn Franco, director of The Conference Board Consumer Research Center, in a statement.
"Consumers' short-term outlook, while moderately more positive, does not suggest any significant pickup in activity in the coming months," Franco added. "Regarding their financial situation, while consumers were less dire about their income prospects than in December, the number of pessimists continues to outnumber the optimists."