The Conference Board announced on Tuesday its U.S. consumer confidence gauge rose 3.4 points to 131.6 in January 2020 from 128.2 in December 2019.

Economists had expected consumer confidence to come in at 128.0.

December's consumer confidence reading was revised up from originally estimated 126.5.

The survey showed that the expectations index rose from 100.0 last month to 102.5 this month, while the present situation index increased from 170.5 to 175.3.

Lynn Franco, Senior Director of Economic Indicators at The Conference Board, noted: "Consumer confidence increased in January, following a moderate advance in December, driven primarily by a more positive assessment of the current job market and increased optimism about future job prospect." She also suggested that "optimism about the labor market should continue to support confidence in the short-term and, as a result, consumers will continue driving growth and prevent the economy from slowing in early 2020."