In September the level of consumer confidence in the US unexpectedly rose to the highest in 18 years, Bloomberg reports referencing to Conference Board.

Measured index was 138,4, while estimate was 132,1, and value of index in August was 134,7. Previous record level of 144,7 was reached in 2000.

Strengthening labor market and tax reform aimed at tax reduction add to Americans’ optimism in future development of economy and their financial position. And this is despite of escalating trade war with China. On Monday administration of US President imposed tariffs on $200 billion of goods from Asian country. Economists assume that this can influence consumers mood and cause hike in prices of everyday purchases.

Sign of optimism is also so-called labor differential, which measures difference in number of people thinking that jobs are plenty and people viewing that jobs are hard to get. This measure has been growing for three months already and widened to 32,5%. This is the highest difference since January 2001.

Such high level of confidence will support consumer spending especially ahead of coming holiday sales.