Consumer expectation drops amid fiscal cliff concerns
The Conference Board’s Consumer Confidence Index declined slightly for the second-consecutive month in December and now stands at 65.1 after dropping more than 6 points from the month prior, according to a release from the Conference Board Thursday.
The Expectations Index, which is a measure of confidence in the short-term future economic situation, decreased from 80.9 in November to 66.5 percent in December.
In the release, Lynn Franco, who is the director of economic indicators at The Conference Board, cited uncertainty in the looming fiscal cliff as the reason for the sudden drop, which was similar to what happened in August 2011 during debt ceiling discussions.
Consumers’ assessment of the current conditions improved in December, however. People surveyed who said business conditions were “good” during the month rose 2.5 percentage points (17.1 percent from 14.6 percent), while those who considered current conditions “bad” decreased to 27.3 percent from 31.2 percent in November, according to the report.
To read the full report, click here.