Consumer confidence remains strong at 92.6 for December. This is the second highest reading of the recovery.

Consumer confidence is strong especially in the assessment of current conditions which offers an indication of monthly strength for December consumer activity. The consumer confidence index rose 1.6 points to 92.6 which, outside of October's 94.4, is the strongest reading of the recovery. November's index is revised 2.3 points higher to 91.0.

The current conditions component of the index is up 5.1 points to 98.6, a convincing gain and a recovery best. The jobs-hard-to-get subcomponent shows special strength, at 27.7 percent vs November's 28.7 percent in an improvement that will lift expectations for strength in the December employment report.

Showing less punch is the expectations component which fell 8 tenths to 88.5. Weakness here, in contrast to the strength of the current jobs assessment, reflects pessimism in the jobs outlook where 16.9 percent see fewer jobs ahead vs 14.7 percent who see more opening up. Inflation expectations are steady at 5.1 percent which is soft for this reading and reflects price declines underway at the gas pump.

A negative in the report is a sizable decline in those expecting to buy a house in the next six months in what is the latest bad news for home builders. But this report on net, especially the gain for current conditions, points to extending momentum for the consumer sector which is benefiting from a healthy jobs market and easing gasoline prices.