Consumer confidence rebounds in December; optimism in economy

Washington

CONSUMER confidence rebounded more than forecast in December as Americans grew more optimistic about the current state of the economy and job market.

The Conference Board's sentiment index climbed to 96.5 from a revised November reading of 92.6 that was higher than previously estimated, the New York-based private research group said on Tuesday. The median forecast in a Bloomberg survey of economists called for 93.5. The combination of a strong labour market and cheap fuel costs have buoyed households' finances, giving them the wherewithal to purchase everything from cars to clothing and holiday gifts. Faster growth in wages would usher in bigger gains in confidence and probably provide another boost to consumer spending, the biggest part of the economy.