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UPDATE 1-US consumer confidence bounces back in November

(Updates with detail, comment)

By Eric Burroughs

NEW YORK, Nov 26 (Reuters) - U.S. consumer confidence bounced back in November from a nine-year low as a rebounding stock market soothed nagging worries about the economy's prospects, providing hope holiday spending will not be as bad as feared.

The Consumer Confidence Index rose to 84.1 in November from 79.6 in October, breaking five straight months of declines, the Conference Board, a private business research group, said in a report. But the index remained well below September's reading of 93.7 and was below economists forecasts of 85.2.

Stocks fell on disappointment that consumer confidence was weaker than expected while bond prices extended early gains, pushing down yields with traders saying the report failed to support hopes for a quick return to a robust economic recovery.

"The rebound in expectations suggests consumers do not expect economic conditions to become worse," said Lynn Franco, director of the Conference Board's Consumer Research Center, adding that the report signaled "brighter holiday spending than was anticipate only a month ago."

Most of the index's gain came from optimism on the economy's six-month outlook. But 27.5 percent of those surveyed said jobs were hard to get -- the largest amount in more than eight years. A rise in this index tends to foreshadow a move up in the jobless rate, currently at 5.6 percent.

Analysts said the index pointed to a lackluster economic recovery, with strong growth unlikely to come until late next year.

"The five-point increase is nice after a five-month slide. But the jobs are plentiful index worsened. So you could easily bounce along with a 2 percent (gross domestic product) growth rate for a very protracted period of time," Cary Leahey, senior U.S. economist at Deutsche Bank Securities.

The Present Situation Index, a measure of consumers' current attitudes about the economy and their finances, rose only slightly to 77.6 in November from its lowest level since early 1994 at 77.2 in October. But the Expectations Index, a gauge of consumers' six-month outlook, jumped to 88.4 from 81.1.

The persistent erosion in consumer confidence this year has stoked fears that shoppers may rein in spending just before the crucial holiday season, when many retailers make about a quarter of their yearly sales.

The survey found consumers' plans to buy a new home or car in the next six months also fell in November, raising concerns about two areas of the economy that have been firing on all cylinders.

Department and retail chain stores are bracing for sluggish results, and auto sales have slowed from their breakneck pace even though big incentives like zero-percent financing remain in place. But low mortgage rates have kept home buying strong.