CONSUMER CONFIDENCE HITS HIGHEST LEVEL SINCE 2001

Boosted by a brighter outlook for the labor market and present day business conditions, consumer confidence rose for the third consecutive month in February and now stands at a five-and-a-half year high, according to yesterday's report from The Conference Board.

The Consumer Confidence Index improved to 112.5 (1985=100) this month, up from 110.2 in January and 1.5 points below the last high of 114, reached in August 2001.While nearly 30 percent of consumers assessed current business conditions as "good," helping lift the Present Situation Index from 133.9 to 139 this month, consumers' outlook for the next six months remained nearly unchanged from January.

"All in all, it appears that the pace of economic growth exhibited in the final months of 2006 has carried over into early 2007 and may have even gained a little momentum," said Lynn Franco, director of The Conference Board Consumer Research Center.

**Taken from the California Association of Realtors Bulletin, dated February 28th, 2007.