The component of today's confidence index that tracks consumers' present situation rose to 96.9 this month from 96.2 in November. A gauge of consumer expectations for the next six months rose to 91.5 from 77.3 in November, the biggest jump since December 1992.
The December share of respondents who said jobs were plentiful rose to 17.6 percent from 17.5 in November. The percentage saying jobs were hard to get fell to 21.8 from 22.7. The largest change was in the outlook. The percentage of respondents expecting increased employment over the next six months rose to 16.1, the highest since October last year, from 14.4 percent in November.
"Last year we got bonuses, and this year we didn't, but I still have a job," said Eddie Figueroa, 39, of New York City. An employee of Airborne Express, the package delivery service, he said business "will pick up after the holidays are over."
The share planning to buy an automobile rose to 7.9 percent from 7.1 percent in November. The share planning to buy a house rose to 4.1 percent from 3.3 percent. The share planning to buy a major appliance fell to 27.1 percent from 29.4 percent.
Even with the gains in confidence, the index is down from a peak of 144.7 in May last year, a year in which consumer spending rose 4.8 percent. While spending slowed to a 1 percent annual rate of growth in the third quarter of this year, October and November figures suggest it accelerated in the fourth quarter to a 4.7 percent rate. Personal spending accounts for about two-thirds of the economy.
The US entered a recession March, ending a record 10 years of expansion, according to the National Bureau of Economic Research.
Central bankers have lowered their target for the benchmark overnight bank lending rate 11 times this year to try to underpin consumer, investor and business confidence. At 1.75 percent, the rate is the lowest in 40 years.
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