a Bang~Up Year ahead??

CONSUMER CONFIDENCE HITS EIGHT-MONTH HIGH

Following a two-month decline, the confidence level of the nation's consumers took an upward turn in December, according to a recent report from The Conference Board.

The Consumer Confidence Index improved to 109.0 (1985=100) last month, up from 105.3 in November and nearly reaching the last high of 109.8, which was achieved in April. Also in December, the Present Situation and Expectations indexes increased to 129.9 and 95.1, respectively.

"Despite the latest improvement in the Index, there is little to suggest that the pace of economic activity in the final quarter of 2006 is anything but moderately better than its uninspiring performance earlier this year," said Lynn Franco, director of The Conference Board Consumer Research Center. "

Given the see-saw pattern in recent months, it is too soon to tell if this boost in confidence is a genuine signal that better times are ahead."

**Taken from the California Association of Realtors Bulletin, dated January 3, 2007.