updated 6/28/2005 10:54:35 AM ET 2005-06-28T14:54:35

Consumer confidence rose to higher-than-expected levels in the United States in June for its second straight big monthly advance, a private research group said Tuesday. The gain showed consumer confidence is at a three-year high.

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The Conference Board said its Consumer Confidence Index rose to 105.8, up from a revised 103.1 in May and better than the 104.0 analysts had expected. May's reading had also beat the forecasts.

"The improvement in consumer's mood suggests that business activity and labor market activity will continue to pick up over the next several months," said Lynn Franco, director of The Conference Board's Consumer Research Center. "And, with consumers in better spirits, and job concerns remaining relatively steady, there is little reason to expect a dramatic shift in consumers' spending."

Economists and Wall Street closely track consumer confidence because consumer spending accounts for two-thirds of all U.S. economic activity.

One component of the consumer confidence report, the Expectations Index, which measures consumers' outlook over the next six months, rose to 95.8, from 93.4 last month. The Present Situation rose to 120.7 from 117.8.

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