Consumer Confidence Rises

Forget Christmas. Shoppers have their eyes on the future. Consumers grew increasingly confident in December as more shoppers said they anticipate business and labor market conditions to improve in the next six months, according to The Conference Board.

The research group’s Consumer Confidence Index rose to 52.9 this month, up from 50.6 in November, marking the highest level in two years. The Expectations Index increased to 75.6 from 70.3 last month, but the Present Situation Index remained at a 26-year low, falling to 18.8 from 21.2.

“A more optimistic outlook for business and labor market conditions was the driving force behind the increase in the Expectations Index,” said Lynn Franco, director of the group’s Consumer Research Center. “Regarding income, however, consumers remain rather pessimistic about their short-term prospects and this will likely continue to play a key role in spending decisions in early 2010.”