Consumer Confidence index at all-time low
Source: money.cnn.com
A key measure of consumer confidence fell to an all-time low in December amid a dismal job market and uncertain outlook for the new year.
The Conference Board, a New York-based business research group, said Tuesday that its Consumer Confidence Index fell to 38 in December, down from 44.7 in November.
Economists were expecting the index to increase to 45.5, according to a Briefing.com consensus survey of economists.
The gloomy news came at the end of a full year of recession. The credit crunch has strained the financial system as central banks struggle to raise capital.
At the same time, housing prices have plunged and S&P 500 has plummeted more than 40%. The dollar has been weak against major currencies. This year’s holiday retail season is predicted to have been the worst in decades.
Perhaps most unsettling for Americans is the deteriorating job market. Layoffs and income cuts were widespread this year. The number of Americans filing for first-time unemployment benefits rose to a 26-year high for the week ended Dec. 20.
Nearly 2 million jobs were lost in 2008, and the slumped stock market means some nest eggs have shrunk considerably.
The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households.
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