ABCNEWS.com

NEW YORK, Jan. 5 Consumer confidence extended its hot streak into the new year, inching up from last week to come within a point of its record high in 14 years of weekly polls.

Seventy-six percent of Americans now rate the economy positively, one point below its record set last year. Sixty-seven percent say their own finances are in good shape and 54 percent say its a good time to buy things each slightly below its all-time peak.

The ABCNEWS/Money magazine Consumer Comfort Index, based on these views, is a point from its best ever last January and March.

Confidence has been extraordinarily high since the beginning of 1998, boosted by rising incomes, low inflation and interest rates and the strong job market. This poll was completed Sunday, before the stock markets gyrations of the last few days, but moves in the market rarely influence consumer confidence.

INDEX The ABC/Money Consumer Comfort Index stands at +31 on its scale of +100 to -100. It averaged a then-record +24 in 1998 and a new record of +28 in 1999. The overall average of the index since its inception in late 1985 is just -12.

GROUPS As usual, confidence is higher among better-off Americans: The index is +60 in higher-income households compared to -25 in the lowest; +45 among college graduates but -10 among high-school dropouts; +38 among whites but -10 among blacks; and +43 among men compared to +21 among women.

Here's a closer look at the three components of the index:

NATIONAL ECONOMY The poll asks: Would you describe the state of the nations economy these days as excellent, good, not so good or poor? Seventy-six percent say excellent or good, up two points from last week. The record, 77 percent, was set Jan. 10 and tied in March, April and July. The worst rating was 7 percent in late 1991 and early 1992.

PERSONAL FINANCES The poll asks: Would you describe the state of your own personal finances these days as excellent, good, not so good or poor? Sixty-seven percent say excellent or good, up one point from last week. The record, 70 percent, was set Aug. 30, 1998, and tied this January, June and September. The worst was 42 percent March 14, 1993.

BUYING CLIMATE The poll asks: Considering the cost of things today and your own personal finances, would you say now is an excellent time, a good time, a not so good time or a poor time to buy the things you want and need? Fifty-four percent say excellent or good, up two points from last week. The record, 56 percent, was set on Nov. 29, 1998 and tied Dec. 5, 1999; the worst rating, 20 percent, was set in fall 1990.

Methodology

The ABCNEWS/Money magazine Consumer Comfort Index represents a rolling average based on telephone interviews with about 1,000 adults nationwide each month. This weeks results are based on 1,050 interviews in the month ending Jan. 2 and have an error margin of plus or minus three percentage points. Field work was done by ICR-International Communications Research of Media, Pa.

The ABC/Money index is derived as follows: The negative response to each index question is subtracted from the positive response to that question. The three resulting numbers are then added and divided by three. The index can range from +100 (everyone positive on all three measures) to -100 (all negative on all three measures). The survey began in December 1985.