Consumer Confidence in U.S. Slumps to Record on Jobs

[The Master]

Confidence among U.S. consumers unexpectedly dropped in December to a record on growing anxiety over the lack of jobs, raising the risk that spending will keep weakening into the new year.

The Conference Board’s index of consumer confidence fell to 38, the lowest level since records began in 1967, from 44.7 in November, the New York-based private research group said today. Another report showed declines in property values accelerated.

Rising unemployment, mounting foreclosures and declining household wealth have dimmed the outlook for consumer spending, which accounts for 70 percent of the economy. This year’s holiday season, the most important for retailers, was probably the worst in at least four decades.

“The deterioration going on right now in the labor market made people feel much worse,” said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts. “If people are worried about their jobs, they are not going to spend. That is extremely negative.”

The 60 percent plunge in gasoline prices from July’s record had prompted economists to project confidence would climb, mimicking the improvement in other measures. The median estimate in a Bloomberg News survey of 52 analysts called for the Conference Board’s gauge to rise to 45.5 from previously reported 44.9 for November.

(Excerpt) read more at bloomberg ...

[cavymeister]

How is this unexpected? Did they think that just because the gas prices were lower and the retailers had some good sales, that we wouldn't be worried about losing our jobs? Does an immenant threat of a failing auto industry bode confidence? How does a mounting debt that is looking to surpass the GDP do for confidence? Of course people aren't confident. We have a government at the reighs that is just going full steam ahead into a ****ing brick wall.

I hate the MSM....

[BlackStone]

Hey look at that, people aren't confident about buying things because jobs are being lost by the millions, the dollar is depreciating, and they have a government comprised of a bunch of economic and moral retards.