The consumer confidence index increased to 78.1 in December from a revised 72.0 last month, The Conference Board reported Tuesday.
The November index was originally reported as 70.4.
The present situation index rose to 76.2 from a revised 73.5, first reported as 72.0, while the expectations index climbed to 79.4 from a revised 71.1, first reported as 69.3.
Economists polled by Thomson Reuters predicted a 76.0 reading for the index.
"Consumer confidence rebounded in December and is now close to pre-government shutdown levels (September 2013, 80.2)," said Lynn Franco, director of The Conference Board's Consumer Research Center. "Sentiment regarding current conditions increased to a 5 ½ year high (April 2008, 81.9), with consumers attributing the improvement to more favorable economic and labor market conditions. Looking ahead, consumers expressed a greater degree of confidence in future economic and job prospects, but were moderately more pessimistic about their earning prospects. Despite the many challenges throughout 2013, consumers are in better spirits today than when the year began."
Business conditions were called "good" by 19.6% of respondents in December, down from 20.4% in November. Those saying conditions are "bad" slid to 22.6% from 24.6%.
The percentage of consumers expecting a pickup in business conditions in the next half year gained to 17.2% from 16.7%, while 14.0% said they expect conditions to worsen, down from 16.1% in the prior month.
On the jobs front, those who believe jobs are "plentiful" climbed to 12.2% in December from 12.0% in November, while the number saying jobs are "hard to get" slid to 32.5% from 34.1%. The respondents who see fewer jobs becoming available in a half year, decreased to 19.0% from 21.4%. Those expecting more jobs to become available soared to 17.1% from 13.1%, The Conference Board reported.
