Consumer Confidence Index sinks to all-time low

Consumer confidence fell to an all-time low in December, according to the Conference Board Consumer Confidence Index released today.

The index, which is based on a sample of 5,000 U.S. households, had increased moderately to 44.7 in November but sank to 38 as of Dec. 22.

Consumers who said business conditions are "bad" increased to 46 percent from 40.6 percent in November, while those claiming business conditions are "good" fell to 7.7 percent from 10.1 percent. Consumers who said jobs are "hard to get" climbed to 42 percent from 37.1 percent, and those who said jobs are "plentiful" fell to 6.2 percent from 8.7 percent.

More consumers expect business conditions to worsen during the next six months, up to 32.8 percent from 28.3 percent in November. Those expecting conditions to improve, however, did rise about two percentage points to 13.4 percent. The number of consumers anticipating fewer jobs in the months ahead increased to 41 percent from 33.7 percent, and those expecting more jobs increased a half percentage point to 9.7 percent.

About 12.7 percent of consumers expect an increase in their incomes in the short term, down from 13.1 percent.

"The further erosion of the Consumer Confidence Index reflects the rapid and steep deterioration of economic conditions that occurred in the fourth quarter of 2008," Conference Board Consumer Research Center Director Lynn Franco said in a news release. "The overall economic outlook remains quite dismal for the first half of 2009, and only a modest recovery is expected in the second half."

Two sub-indexes - the Present Situation Index and the Expectations Index - also tumbled in December. The Present Situation Index declined to 29.4 from 42.3 a month earlier; the Expectations Index had a less dramatic turn, falling to 43.8 from 46.2.[[In-content Ad]]