The Conference Board Consumer Confidence Index® rose to 52.9 points for December 2009 from 38.6 points one year ago. The group’s Expectations Index increased to 75.6 from 44.2 points in December 2008, but the Present Situation Index fell to 18.8 points from 30.2 points in 2008, the lowest reading recorded since February 1983.

Lynn Franco, director of The Conference Board Consumer Research Center, explained that U.S. consumers felt moderately better about the economy this month, given that the expectations for the short term increased to its highest level in two years.

“The Present Situation Index, however, continued to lose ground and remains at a 26-year low. A more optimistic outlook for business and labor market conditions was the driving force behind the increase in the Expectations Index,” Franco said. “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.”

The percentage of survey respondents who claimed that business conditions were “bad” increased between to 46.6 percent in December from 44.5 percent in November, while those who claimed conditions were “good” decreased to 7 percent in December from 8.1 percent in November.

The job market outlook remained poor, with only 2.9 percent saying that jobs were plentiful. Nearly half of the respondents said that jobs were hard to find. But the percentage of consumers expecting more jobs to become available in the months ahead increased to 16.2 percent in December from 15.8 percent in November. The proportion of consumers anticipating an increase in their incomes decreased to 10.3 percent in December from 10.9 percent in November.

The monthly index is based on the reference point of the average consumer confidence level in 1985, with readings higher or lower than this base level reflecting the current level of optimism or pessimism.