Consumers in the U.S. grew more optimistic about the economy in June, amid rising optimism about business conditions and employment, the U.S. Conference Board said today.

The private sector research organization said that its index of consumer confidence hit a three-year high in June, standing at 105.8, from the revised 103.1 seen in May.

June marked the second month of growth for the index.

Economists had expected a reading of 105.0. The index was equal to 100 in 1985.

“The improvement in consumers’ mood suggests that business activity and labor market activity will continue to pick up over the next several months,” said Lynn Franco, an economist at the Conference Board. “With consumers in better spirits, and job concerns relatively steady, there is little reason to expect a dramatic shift in consumers’ spending,” she added.

The Conference Board said its present situation index rose to 120.7, versus May’s revised 117.8, while its expectations index for June hit 95.8, after the prior month’s revised 93.4.

Consumers’ assesment on business conditions got better in June, with those who deemed conditions as “bad” falling to 15.5% of the survey, versus 16.4% the month before. Those calling conditions “good” in June was unchanged from the month before, at 26.9%. The outlook for the economy also got a thumbs-up from consumers, with those who see slower growth falling to 9.0%, from 9.5% in May.

The labor-market reading also improved in June, the Conference Board said. Respondents who were pessimistic about hiring fell to 22.6% of the survey, from 24.1% in May, while those who were upbeat about jobs held steady at 22.6%.