Economics professor says economic news is good

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The latest batch of economic data shows a big rebound in consumer confidence AND a surge in new home sales. The jump in consumer confidence surprised analysts who were expecting a slight dip. The index is closely watched because consumer confidence drives consumer spending, which accounts for about two-thirds of the nation's economic activity. Meanwhile, the Commerce Department says new-home sales rose 6.4 percent in November. That's the largest increase in almost a year. Economist Louis Johnston with the College of St. Benedict and St. Johns University says a surprising number of homeowners are taking advantage of the Federal Reserve's 11th interest rate cut.

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