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2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

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.

-- Frank Ahrens
The Ticker is Twittering!

By Frank Ahrens  |  December 30, 2008; 10:12 AM ET
Categories:  The Ticker  | Tags: consumer confidence, economic indicators  
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Comments

"Analysts had expected the index to edge back up to 45 in December."

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Why would anyone in their right mind expect consumers to be more confident given the economic events of the past few months?

These analysts, the so-called experts on all matters financial, were largely blind to the house of cards that was being built on Wall Street. Their willingness to look the other way while our economy was being pillaged by the elite is at the very least a contributing factor to our current economic collapse.

Posted by: mhhaggard | December 30, 2008 10:41 AM | Report abuse

The Mother of all Recessions
The George W Bush recession. It started in 2003. The vast corporate fraud was exposed and crumbled in the last year. Enron paved the way and George W Bush was complicit with that scandal, setting the tone for future big business theft. Now middle class America is paying big time.

Posted by: RMB2 | December 30, 2008 11:06 AM | Report abuse

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