The latest American Customer Satisfaction Index held steady for the second quarter of 2004, remaining at its highest level in 10 years.

The index stands at 74.4, unchanged from last quarter. Economists report that the sunny news indicates high customer satisfaction, which generally contributes to increased consumer spending and a healthier economy. While satisfaction cannot completely offset recent price and interest rate hikes, the economy’s ability to deliver strong satisfaction levels should help bring spending back from its recent dip.

The report, which is produced by a partnership of the University of Michigan Business School, the American Society for Quality and CFI Group, suggests that the U.S. auto industry will have to fight to keep from losing customers to foreign carmakers, and that some domestic PC brands are gaining market shares. Industry-level satisfaction scores provide strong cues concerning which lines of business are most vulnerable to competition.

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