Uptick in consumer confidence

The Conference Board Consumer Confidence Index increased for the second straight month to 52.9, up from 50.6 in November. A baseline index of 100 was set in 1985.

While confidence increased, the Conference Board's Present Situation Index, however, declined to 18.8 from 21.2 in November -- a 26-year low.

"A more optimistic outlook for business and labor market conditions was the driving force behind the increase in the Expectations Index," said Lynn Franco, director of the Conference Board Consumer Research Center. Franco pointed out that expectations for the short-term future increased to the highest level in two years.

"Regarding income, however, consumers remain rather pessimistic about their short-term prospects, and this will likely continue to play a key role in spending decisions in early 2010."

The closely watched Consumer Confidence Survey is based on a sample of 5,000 U.S. households for the New York-based Conference Board by research firm TNS.