Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Consumers lose a little confidence

chart_confidence_index.top.gif By Chris Isidore, senior writer


NEW YORK (CNNMoney.com) -- Consumer confidence took an unexpected step backward in December, with Americans more concerned about the overall economy and the jobs forecast, according to an index issued Tuesday.

The index, which had improved in November, slipped to a reading of 52.5 in December from 54.3 the month before, according to a survey of 5,000 households conducted by the Conference Board, a prominent economic research firm.

Both consumers' view of their present economic situation and their expectations six months from now fell slightly.

Economists surveyed by Briefing.com had forecast that confidence would improve to 56.1.

The survey was conducted after Congress passed an extension of the Bush-era tax cuts and a partial payroll tax holiday that will put more money into most taxpayers' paychecks in the new year.

But consumers are somewhat more concerned about the outlook for jobs following a jump in the unemployment rate in November to 9.8%. Those who believe jobs are hard to get rose 0.5 percentage point to 46.8%, and those who there will be fewer jobs six months from now crept up 0.4 point to 19.5%.

There have been a number of economic readings that had been getting better recently, and the holiday shopping season came in stronger than forecasts, with the National Retail Federation projecting that sales for the season rose 3.3% rather than its initial forecast of a 2.3% rise.

"Consumers' assessment of the current state of the economy and labor market remains tepid, and their outlook remains cautious," said Lynn Franco, director of the Conference Board's consumer research center. "Thus, all signs continue to suggest that the economic expansion will continue well into 2011, but that the pace of growth will remain moderate."

Consumer confidence posted strong gains from March through June of this year, and has been uneven since then, plunging to a 17-month low of 48.6 in September. December's decline marked the first drop since then, but even with drop the reading is now roughly unchanged from a year ago. To top of page

Index Last Change % Change
Dow 17,773.64 -57.12 -0.32%
Nasdaq 4,775.36 -29.93 -0.62%
S&P 500 2,065.30 -10.51 -0.51%
Treasuries 1.82 -0.02 -1.03%
Data as of 11:20pm ET
Company Price Change % Change
Bank of America Corp... 14.56 -0.23 -1.56%
Freeport-McMoRan Inc... 14.00 1.34 10.58%
Ford Motor Co 13.56 -0.53 -3.76%
Apple Inc 93.74 -1.09 -1.15%
Microsoft Corp 49.87 -0.03 -0.06%
Data as of Apr 29
Sponsors

Sections

The Oracle of Omaha joked that the impact on Corporate America would not be the biggest problem of a Donald Trump presidency. More

The Dow is down 300 points over the past two days, leaving the index on track for its worst week since early February. Blame fumbled earnings reports from the likes of Apple and Google as well as concerns about the Bank of Japan. More

Now you can watch the SpaceX Falcon 9 rocket land on a barge as if you were standing on the deck of the ship. More

Visa says new software will allow consumers to check out with chip cards as fast as swiping a card with magnetic strip. More