Consumer confidence jumps

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Tuesday, Dec. 28, 2004 | 11:09 a.m.

NEW YORK -- A widely watched indicator of consumer confidence jumped in December, reversing four months of declines and reaching the highest level since July, a private research group reported today.

The Conference Board, a New York-based business information group, reported that its index of consumer confidence leapt by nearly 10 points to 102.3 in December from 92.6 in November.

It was the highest level for the indicator since its reading of 105.7 in July and well above the level of 94 that investors had been expecting.

"It's a significant jump," said Lynn Franco, director of the Conference Board's research unit.

The upbeat reading ends the year on a high note and bodes well for consumer spending going into 2005. The indicator of consumer confidence is widely watched by economists since spending by individuals makes up about two-thirds of all economic activity in the United States.

The monthly report on consumer confidence is based on a survey of 5,000 U.S. households, and the preliminary figure for December reported Tuesday was based on the roughly 2,700 responses that were received by Dec. 20.