Consumer Confidence Hits Record Low
U.S. consumer confidence dropped again, hitting a new record low in December, according to a monthly survey.
According to the Conference Board, the Consumer Confidence Index dropped from 44.7 in November to 38 in December. The number represents a composite of a number of factors representing how optimistic U.S. consumers feel about the economy.
Analysts had expected the index to edge back up to 45 in December.
Factors influencing the poor December showing include the weak holiday shopping season and rising unemployment.
"The overall economic outlook remains quite dismal for the first half of 2009, and only a modest recovery is expected in the second half," said Lynn Franco, director of the Conference Board consumer research center.
The Consumer Confidence Index is composed of the Present Situation Index and the Expectations Index.
The Present Situation Index is nearing levels last seen during the 1990-'91 recession, though not as low as those seen during the 1981-'82 recession.
December 30, 2008; 10:12 AM ET
Categories: The Ticker | Tags: consumer confidence, economic indicators
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