Consumer confidence surged in December as declining gasoline prices and improving job opportunities buoyed spirits, boding well for spending in the new year.
The Conference Board said Wednesday that its Consumer Confidence Index advanced to 103.6 this month, after recovering to 98.3 in November. Analysts had expected a reading of 103.0 for December.
December's rise put the index at its highest level since Hurricane Katrina struck on Aug. 29, devastating Gulf Coast states and disrupting fuel and trade for much of the nation. Last August, before the storm, the index registered 105.5.
Lynn Franco, director of the Conference Board's Consumer Research Center, said in a statement accompanying the report that "consumer confidence continues to bounce back" from the beating it took after the hurricane.
"The resiliency of the economy, recent declines in prices at the pump, and job growth have consumers feeling more confident at year-end than they felt at the start of 2005," Franco said. "Consumers are confident that the economy will continue to expand in 2006."
The consumer confidence index stood at 102.7 in December 2004.
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