NEW YORK (CNN/Money) - A closely watched measure of consumer confidence in the United States rose in December, a published report said Friday, showing more strength than analysts had expected.
The University of Michigan's consumer sentiment index rose to 87.0 from 84.2 in November, according to a Reuters report. Economists, on average, expected a reading of 85.0, according to Briefing.com.
The survey's current conditions index, which measures how consumers feel about the state of the economy at present, rose to 95.9 from 93.1, Reuters said. The expectations index, measuring how consumers feel about the economy's future prospects, rose to 81.2 from 78.5, the report said.
The report, which is available only to paying subscribers, had little impact on U.S. stock prices, which were lower in early trading. Treasury bond prices were mixed.
Consumer confidence is critical to the U.S. economy, since consumer spending makes up more than two-thirds of gross domestic product (GDP), the broadest measure of economic health.
Consumers have spent relentlessly despite a recession, more than 1.8 million job cuts, falling stock prices, corporate malfeasance, terrorist attacks and concerns about a possible war in Iraq.
With household debt rising and businesses still reluctant to hire new workers, economists have worried that consumers will need some help in 2003.
While consumer spending likely won't stop altogether, it might not be robust enough to prop up the entire economy as it has lately without an assist from the business sector.
President Bush has lately replaced several members of his economic team, setting the stage for an aggressive push this year for a stimulus package, including tax cuts, that some economists think might encourage businesses to spend money and hire workers.
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