U.S. consumer confidence fell in Jan. 2012 after two consecutive monthly gains, a report said on Tuesday.

The Conference Board, which conducted monthly consumer confidence survey, said that its consumer confidence index fell to 61.1 from 64.8 in Dec. 2011.

The index was closely watched by investors as consumer spending accounted for approximately 70 percent of U.S. economy. It had surged from 40.9 in Oct. to 64.8 in Dec. last year as consumers became more confident about the economic outlook.

Lynn Franco, director of The Conference Board Consumer Research Center, said in a statement that consumers' assessment of current business and labor market conditions turned more downbeat and is back to Nov. 2011 levels.

"Regarding the short-term outlook, consumers are more upbeat about employment, but less optimistic about business conditions and their income prospects." said Franco,"Recent increases in gasoline prices may have consumers feeling a little less confident this month."