money.cnn.com/2005/06/28/news/economy/consumer_confidence -> money.cnn.com/2005/06/28/news/economy/consumer_confidence/
SUBSCRIBE TO MONEY Confidence hits three-year high Conference Board survey shows improved outlook on business conditions, jo bs; June 28, 2005: 2:09 PM EDT NEW YORK (CNN/Money) - Consumer confidence jumped to the highest level in three years in June, coming in above most economists' forecasts, accord ing to a report from a business research group Tuesday. "With consumers in better spirits, and job concerns remaining relatively steady, there is little reason to expect a dramatic shift in consumers' spending." Consumer confidence is watched closely since consumer spending fuels more than two-thirds of economic activity. While corporations have been caut ious with business spending, robust consumer spending has helped spur fa ster economic growth over the past two years. But with short-term interest rates rising and oil prices at record highs, some economists say consumers may feel pressured to moderate spending i n the months ahead. "At this level the index is consistent with spending growth of about 35 percent, in line with recent economic data. But watch out for a dip next month in the wake of the renewed spike in gas prices," Ian Shepherdson, chief economist with High Frequency Economics, wrote in a report. For the first time in nearly three years, the percentage of consumers say ing jobs are "hard to get" did not exceed the percentage saying jobs are "plentiful." Consumers were also increasingly optimistic about the six-month outlook.
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