US consumers upbeat for holidays

High winter heating bills could yet stifle Christmas spending.

US consumer confidence grew in early December, with shoppers entering the Christmas season in an upbeat mood, according to a report.

The University of Michigan's measure of consumer sentiment rose to 88.7 points from 81.6 in November.

It is the second rise in a row, and follows a pick-up in the job market and falling gasoline prices.

Confidence indicators tend to follow the direction of gasoline prices, which have fallen to a six-month low.

Rising confidence figures will boost prospects of a bumper Christmas for US retailers.

The big question for retailers is whether the recent surge in energy prices and the subsequent increase in winter heating bills will reduce Christmas shopping budgets.