Consumer Confidence Sinks to Record Low
January 11th, 2008Via: AP:
Consumer confidence fell to an all-time low as worries about jobs, energy bills and home foreclosures darkened people’s feelings about the country’s economic health and their own financial well-being.
According to the RBC Cash Index, confidence tumbled to a mark of 56.3 in early January. That compares with a reading of 65.9 in December — and a benchmark of 100 — and was the worst since the index began in 2002.
“People are anxious because everything sounds pretty awful these days,” said Bill Cheney, chief economist at John Hancock Financial Services Group.
Economists cited several factors for consumers’ gloomy outlook:
_Hiring practically stalled in December, pushing the unemployment rate to 5 percent, a two-year high, the government reported last week.
_The meltdown in the housing market has dragged down home values and made people feel less wealthy.
_Harder-to-get credit has made it difficult for some to make big-ticket purchases.
_High energy prices are squeezing wallets and pocketbooks.
_There has been much hand-wringing on Wall Street and Main Street as to whether all these problems will plunge the country into recession.
“Consumers are gloomy. The confidence reading suggests that people believe bad times are upon us,” said Richard Yamarone, economist at Argus Research.
Another piece of evidence pointing to an American “Sushi Slump”.