Surging confidence sets hopes high as ’11 nears

Confidence among U.S. consumers rose in November to the highest level in five months — and a gauge of business activity unexpectedly climbed, signaling the recovery is taking hold heading into 2011.

Gains in spending that are giving retailers like Wal-Mart a boost during the holiday shopping season are more likely to continue into next year as households sense that job and income prospects are improving.