NEW YORK (AP) -- Americans are gaining faith that the economy is on the upswing.
An improving job outlook helped the Consumer Confidence Index soar to the highest level since April and near a post-recession peak, according to a monthly survey by The Conference Board.
The second straight monthly surge coincided with a decent holiday shopping season for retailers, though stores had to heavily discount to attract shoppers.
The rise in confidence jives with a better outlook for the overall economy. An Associated Press poll of three dozen private, corporate and academic economists projects U.S. economic growth will speed up in 2012, if it isn't derailed by upheavals in Europe.
... The Conference Board, a private research group, said Tuesday that its Consumer Confidence Index rose almost 10 points to 64.5 in December, up from a revised 55.2 in November. Analysts had expected 59. The level is close to the post-recession high of 72, reached in February.
The December surge builds on a big increase in November, when the index rose almost 15 points from October. That month's reading was the lowest since March 2009, the depths of the recession.
One component of the index that measures how shoppers feel now about the economy rose to 46.7 from 38.3 in November. The other barometer, which measures how shoppers feel about the next six months, rose to 76.4 from 66.4.
In particular, shoppers' assessment of the job market improved, according to preliminary results of the survey conducted Dec. 1-14. Those anticipating more jobs in the months ahead increased to 13.3 percent from 12.4 percent while those anticipating fewer jobs declined to 20.2 percent from 23.8 percent.
Economists watch confidence numbers closely because consumer spending — including items like health care — accounts for about 70 percent of U.S. economic activity.
Americans have more reason to be optimistic. The economy has produced at least 100,000 new jobs for five months in a row, the longest such streak since 2006. The number of people applying for unemployment benefits has dropped to the lowest level since April 2008.
According to the AP poll of economists, conducted Dec. 14-20, the U.S. economy is expected to grow 2.4 percent next year. In 2011, it likely grew less than 2 percent ...
courtesy of: http://finance.yahoo.com
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