However, the reading is still far short of the 90 that would signify a solid economy or the 120 reflecting a strong economy. In October, consumer confidence was 48.7. The index, which hit a historic low of 25.3 in February 2009, had a three-month climb from last March through May, fueled by signs the economy might be stabilizing. The road has been bumpier since last June, as rising unemployment has taken a toll on consumers, the AP reported.

"Regarding income, however, consumers remain rather pessimistic about their short-term prospects, and this will likely continue to play a key role in spending decisions in early 2010," said Lynn Franco, director of The Conference Board Consumer Research Center.

Even though shoppers saw their confidence improve slightly and bought a bit more during the holiday shopping season, they've been cautious in their spending, the AP reported. Experts say such patterns might remain for several years amid unemployment that could be stubbornly high.

Meanwhile, the Commerce Department said yesterday that retail sales declined 0.3% in December compared with November, much weaker than the 0.5% rise that economists had been expecting, the AP reported. Excluding autos, sales dropped by 0.2%, also weaker than the 0.3% rise analysts had forecast. For the year, sales fell 6.2%, the biggest decline on records that go back to 1992. The only other year that annual sales fell was in 2008, when they slipped by 0.5%.

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