Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, December 29, 1993                   TAG: 9312290146
SECTION: BUSINESS                    PAGE: A-9   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Medium

CONSUMER MORE UPBEAT

The Conference Board, a business-supported research group, said Tuesday its consumer confidence index jumped 8.3 points, to 80.2. The index, which has a 1985 base of 100 points, has gained nearly 20 points since October, reflecting renewed optimism about the economy's direction.

The December results weren't too surprising, coming after news from big retailers that shoppers, while very choosy about what they bought, generally were in a spending mood at Christmas. But some economists questioned the link between improved consumer confidence and an uptick in spending.

The survey, compiled from questionnaires sent to 5,000 households across the country, found consumers more optimistic than in November about business conditions for the next six months. Twice as many consumers are positive about the immediate future as those who are negative, a turnaround from October, the Conference Board said.

In its South Atlantic region, which includes Virginia, the Conference Board said the index was at 97 points in December, up from 87.2 in November and 88.8 in December 1992.

Fabian Linden, executive director of the Conference Board's Consumer Research Center, said the index "is now at a level historically associated with a reasonably comfortable pace of economic growth."

"The level of consumer expectations, which historically has been an impressive indicator of things to come, has chalked up imposing gains in each of the past two months," he said. "While it may still be too early for the readings to be totally convincing, they are extremely encouraging."