More bad news from the Bush economy. Confidence drops. Economy still losing confidence in Bush.
Consumer confidence unexpectedly declines in December
NEW YORK (AP) — Consumer confidence declined sharply in December, largely because of the discouraging employment outlook, a private research group reported Tuesday.
The Conference Board said its Consumer Confidence Index dropped to 80.3 from a revised 84.9 in November. Analysts had been expecting a reading of 88.0.
The index has fallen for six of the past seven months.
Lynn Franco, director of the Conference Board's consumer research center, said "the major factor dampening consumers' spirits has been the rising unemployment rate and the discouraging job outlook."
"Weak retail sales over the holidays clearly reflect the current mood of consumers," Franco said. "Until there is an improvement in labor market conditions, there is not likely to be a significant upturn in consumer confidence."
The Conference Board's index, based on a monthly survey of about 5,000 U.S. households, is closely watched because consumer confidence drives consumer spending, which accounts for about two-thirds of the nation's economic activity.
The index compares results to its base year, 1985, when it stood at 100.
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