By Xavier Fontdegloria 

Consumer confidence in the U.S. rose in January as expectations for the economy and the labor market improved, according to data from the Conference Board released Tuesday.

The group's consumer confidence index rose to 89.3 in January from 87.1 in December.

January marks the first uptick in consumer confidence after two consecutive months of declines for the index. However, it remains below the October level of 101.4, which was the highest since the coronavirus pandemic hit the U.S., and February's pre-pandemic level of 132.6.

The January increase was driven by consumers' more upbeat outlook for the economy and jobs, suggesting they foresee conditions improving in the not-too-distant future, said Lynn Franco, senior director of economic indicators at the Conference Board.

"In addition, the percent of consumers who said they intend to purchase a home in the next six months improved, suggesting that the pace of home sales should remain robust in early 2021," Ms. Franco said.

However, "consumers' appraisal of present-day conditions weakened further in January, with Covid-19 still the major suppressor," she said.

Write to Xavier Fontdegloria at xavier.fontdelgoria@wsj.com

(END) Dow Jones Newswires

January 26, 2021 13:27 ET (18:27 GMT)