Consumer Confidence Drops

The AP is reporting that consumer confidence fell in January.

Consumer confidence fell sharply in January on worries over deteriorating business conditions and a weakening job market, a business research group said Tuesday.

The New York-based Conference Board said that its Consumer Confidence Index dropped to 87.9 in January from a revised 90.6 in December. That put it back to about where it was in November, when it registered 87.8.

The January reading was just a tad below the 88 expected by Wall Street analysts, according to Thomson/IFR.

The index, which measures how consumers feel now about the economy, has been weakening since July, suggesting that wary consumers could retrench financially. Any cut back on consumer spending could weaken the economy further.

Consumer Confidence Near 2-Year Low

This is not what retailers want to hear during the holiday shopping season.

Consumer confidence barely budged from a two-year low as housing troubles, a credit crunch, high energy prices and turbulence on Wall Street continue to make people uneasy about the economy and their own financial situations.

The RBC Cash Index showed confidence clocking in at 65.9 in early December. That hovered close to a reading of 64 in November, which marked the worst showing since the devastation wrought by the Gulf Coast hurricanes in 2005.

"There's a great deal of angst out there," said economist Ken Mayland, president of ClearView Economics. "There is a great deal of fear and foreboding."

Economists said a host of factors were to blame for the still gloomy mind-set of consumers. The collapse of the housing market, which has dragged down home values, has made people feel less wealthy. Home foreclosures have shot up to record highs. Harder-to-get credit has made it difficult for some to make big-ticket purchases. High energy prices are squeezing wallets and pocketbooks. And, Wall Street's gyrations have made some worry about the value of their nest eggs.

Over the past year, consumers' confidence has deteriorated sharply, reflecting the toll of the problems facing the economy. Last December, confidence stood at a solid 86.9. The index is based on the results of the international polling firm Ipsos.

Consumer Confidence Drops to 10 Month Low

Further signs of a very weak economy.