U.S. consumer confidence defies expectations for a fall, unexpectedly spikes to 16-year high in March

According to a report released by the Conference Board on Tuesday, U.S. consumer confidence beat forecasts for a fall and unexpectedly improved in the month of March. Data showed that U.S. Conference Board consumer confidence index jumped to 125.6 in March from a revised 116.1 in February.

The data surprised markets who had expected the index to dip to 113.8 from the 114.8 originally reported for the previous month. The Conference Board said the present situation index rose to 143.1 in March from 134.4 in February, while the expectations index increased to 113.8 from 103.9.

Consumers' assessment of current business and labor market conditions improved considerably. Optimism towards the short-term outlook for business, jobs and personal income prospects also improved.

"Consumers feel current economic conditions have improved over the recent period, and their renewed optimism suggests the possibility of some upside to the prospects for economic growth in the coming months," said Lynn Franco, Director of Economic Indicators at The Conference Board.