Consumer confidence rose in December 2001

Consumer confidence increased in December 2001 for the first time in six months, according to a nationwide survey.

The Conference Board Consumer Confidence Index was 93.7 in December 2001, up 8.8 points from the revised No-vember index of 84.9, according to a press release from the Missouri Depart-ment of Economic Development,.

The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households.

The release stated that the primary reason for the increase was a 14.2-point improvement in the "expectations" portion of the index, which is a measure of future economic activity.

The "present conditions" portion of the index also increased slightly, from 96.2 in November 2001 to 96.9 in De-cember 2001. The "present conditions" portion of the index measures how consumers perceive the present state of the economy.

Though slight, the "present conditions" increase is the first since May 2001, the release said.

Nearly all questions posed by the Con-ference Board had positive increases, although perceptions of the current business and job market improved at a slower rate.

Economists credit U.S. military victories in Afghanistan, perceived reduction in the threat of terrorist activity and the rebound in the stock market for the boost in consumer confidence.

"Because consumer spending accounts for two-thirds of the economy, these indices are watched closely. The significant December increases in consumer confidence support forecasts that the recession will be relatively brief. We continue to be optimistic that the economy will turn around next summer," said Joseph L. Driskill, director of the Mis-souri DED.