December consumer confidence drops to all-time low
Consumer confidence falls unexpectedly in December, hitting all-time low as job market worsens.
Consumer confidence hit an all-time low in December, dropping unexpectedly in the face of rising layoffs, in yet another sign that consumer spending is unlikely to pull the U.S. out of a yearlong recession any time soon.
Consumers have been nervous about spending for months — putting off big-ticket purchases, forgoing new clothes and choosing store brands at the grocery store — all of which may make this the worst holiday season for retailers in decades.
The Consumer Confidence Index measured by the Conference Board, a private research group, fell to 38 in December from a revised 44.7 in November. That is its lowest point since the group began compiling the index in 1967, and below the previous low of 38.8 in October. Economists surveyed by Thomson Reuters had expected the index to rise incrementally to 45.
“Deepening job insecurity and falling asset prices are outweighing any optimism consumers may have derived from falling gas prices,” said Dana Saporta, U.S. economist at investment bank Dresdner Kleinwort.
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