We think a lot of that is reaction to the spike in prices at the pump following Katrina.

We could be very well in a period where this is as good as it gets. If prices at the pump keep ticking, and they actually have been ticking upward since this survey was cut off, it very well could take a bite out of confidence.

Consumers appear to be weathering the steady rise in gas prices quite well,

A decline of more than 40 cents (a gallon) in gasoline prices this month and the improving job outlook have combined to help restore consumers' confidence.

A decline of more than 40 cents in gasoline prices this month and the improving job outlook have combined to help restore consumers' confidence.

While the Index remains below its pre-Katrina levels, the shock of the hurricanes and subsequent leap in gas prices has begun wearing off just in time for the holiday season. Despite this latest boost in confidence, holiday spending will be driven by the bargains consumers have come to expect.