But expectations for the next six months improved, which "signals healthy economic growth in 2004," said Lynn Franco, an economist at the Conference Board.

The group's consumer-confidence index fell to 91.3, following a surge in November to a revised 92.5, the highest level in over a year. Economists had expected the index to come in at 91.5, according to a survey by Dow Jones Newswires.

The present-situation index, a gauge of consumers' assessment of current economic conditions, dropped sharply to 73.9 from a revised 81 the prior month.

"Job worries continue," Ms. Franco said. "While consumers expect the job situation to improve in the months ahead, until a significant turnaround takes place, consumers' optimism about current-day conditions will continue to lag behind their expectations."