NEW YORK — Consumer confidence has nearly recovered from the beating it took from Hurricane Katrina and other severe storms, boding well for spending next year.

The Conference Board said yesterday declining gasoline prices and improving job opportunities boosted its Consumer Confidence Index to 103.6 in December from 98.3 in November. That was better than the 103.0 reading analysts had expected.

The index plummeted after Hurricane Katrina on Aug. 29 devastated Gulf Coast states and disrupted fuel and trade but now is approaching the 105.5 reading preceding the storm.

The report is closely watched because consumer spending drives about two-thirds of the U.S. economy.

Gary R. Thayer, chief economist for A.G. Edwards & Sons Inc. in St. Louis, said it was "encouraging that confidence has bounced back after the hurricanes, and it suggests the economy has some good momentum going into the new year."

Consumer caution could be seen in holiday sales figures, which most retailers expect to show a modest gain from last year.

The International Council of Shopping Centers-UBS survey of about 70 retailers indicated sales climbed 3.9 percent for the week ended Saturday from the year-earlier period. That compared with a 4.3 percent year-over-year rise for the same week in the 2004 holiday season. The tallies are based on sales at stores opened at least a year.