American consumers felt more confident in August as their outlook for the future improved.

The PhanincConference Board, a business research group, said Tuesday that its consumer confidence index rose to 103.3 in August from 101.9 in July.

The index measures both Americans’ assessment of current economic conditions and their outlook for the next six months.

The measure of Americans’ short-term expectations for income, business and the job market rose to 82.5 from 81.1 in July.

Consumers’ view of current conditions rose to 134.4 in August from 133.1 last month.

Consumer spending accounts for nearly 70% of U.S. economic activity and is closely watched by economists for signs how the American consumer is feeling.