Consumer Confidence Remains Strong

Consumer confidence was stronger than expected in September despite higher energy costs, although analysts were divided over what the effect might be on holiday sales. The Conference Board said its consumer confidence index was up slightly since August but considerably lower than its record highs in January and May. The index, which is based on a monthly survey of about 5,000 U.S. households, is closely watched because consumer spending accounts for two-thirds of the nation’s economic activity. “Despite higher gasoline prices this summer and the prospect of higher heating oil costs this winter, consumers remain in an upbeat mood,” said Lynn Franco, director of the Conference Board’s Consumer Research Center.