U.S. consumer confidence rose to the highest level in six months, according to the University of Michigan Consumer Confidence Survey. The index rose to 74.2 in December from 71.6 in November. Economists had expected a reading of 72.5. This is the highest reading since June and the third-highest level since the beginning of 2008.

The survey’s measure of current conditions increased to 85.7, above the forecast of 82.1. This reflects the U.S.’s perception of their financial situation and whether or not it is a good time to buy big-ticket items.

Some analysts are crediting the increased confidence to rising stock prices and President Obama agreeing to a two year extension of the Bush tax cuts.