Consumer Confidence Hits New Low In December

New York, NY (AHN) - Consumer Confidence took an unexpected fall in December as poor opinions on the current state of the economy and the job market pushed sentiment to an all-time low.

The Conference Board reported its Consumer Confidence Index fell to 38 in December, down from 44.7 in November. The reading is the lowest on record and is well below the small increase to 45 economists had expected for December.

"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," said Lynn Franco, Director of The Conference Board Consumer Research Center, in a press release.

The Present Situation Index, which gauges the sentiment of business and employment prospects, fell to 29.4 in December, from 42.3 in November. The Present Situation Index is at levels not seen since the 1990-91 recession, but is still above levels hit during the 1981-1982 recession.

Participants claiming current business conditions are "bad" increased to 46 percent from 40.6 percent last month.

Those claiming jobs are "hard to get" rose to 42 percent in December from 37.1 percent in November, according to the Conference Board.

Changes in consumers' short-term outlook were a bit more manageable. Those expecting conditions to worsen over the next six months rose to 32.8 percent from 28.3 percent.

The Conference Board's survey is as of Dec. 22 and is based on a sample of 5,000 U.S. households.