WASHINGTON, Dec 28 (AFP) - American consumer confidence soared in December, ending a five-month slide and raising hope for the economy in 2005, the Conference Board said Tuesday.
The private research group's consumer confidence index, compiled from a survey of 5,000 households, soared 9.7 points to 102.3 -- the highest level since August.
Confidence is crucial because consumer spending accounts for two-thirds of economic activity.
"The continuing economic expansion, combined with job growth, has consumers ending the year on a high note," said Conference Board consumer research chief Lynn Franco.
"The most significant contributor to the rebound in confidence has been the overall improvement in current conditions over the past 12 months," she said in a statement.
"And consumers' outlook suggests that the economy will continue to expand in the first half of the year."
A breakdown of the barometer showed an index of people's confidence in current conditions split between people's feelings about current conditions and the future.
An index of confidence in current conditions leapt 9.6 points to 105.9, while an index of expectations for the future shot up 9.7 points to 99.9.
12/28/2004 15:05 GMT - AFP