The rise in confidence suggests that households aren't yet concerned about the fiscal cliff.
"Hopefully, their optimism is warranted," said Joseph LaVorgna, an economist at Deutsche Bank. But if the cliff isn't avoided, they "could be in for a rude awakening."
The higher tax rates that would result would leave consumers with less money to spend and could prompt businesses to cut back on hiring and investing.
But a resolution of the cliff, as most economists expect, would likely raise both business and consumer confidence even further.
Paul Ashworth, an economist at Capital Economics, said the economy would benefit greatly if a deal is reached this year or in early 2013.
"We would expect to see something of a rebound in business investment, as firms give the green light to projects put on hold in the second half of this year," Ashworth said.
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