U.S. consumer confidence rose to its highest level in almost four years in April, the U.S. Conference Board said today.


However, the research group warned that if fuel prices continue to rise, it would cast a pall on consumer spending, which accounts for two-thirds of all U.S. economic activity.

The Conference Board said that its consumer confidence index rose to 109.6, up from a revised 107.5 in March. April’s reading was the highest since the index touched 110.3 in May 2002. Analysts had expected a reading of 106.4. Confidence has been on an upswing since November in the aftermath of the Gulf hurricanes, except for a sharp dip in February.

“Improving present-day conditions continue to boost consumers’ spirits,” said Lynn Franco, director of The Conference Board Consumer Research Centre in a news releasee. “Recent improvement in the labor market have been a major driver behind the rise in confidence in early 2006. Looking ahead, consumers are not as pessimistic as they were last month.”

Franco added that expectations for the economy and labour market have been trending downward since peaking in 2003, however. She said that “while prices at the pump have yet to impact confidence, further increases could dampen consumers’ mood.”