The Conference
Board (CB) reported on Monday its U.S. consumer confidence index fell 8.1
points to 104.7 in December from an upwardly revised 112.8 (from 111.7) in November.
Economists had predicted
the consumer confidence index to rise to 113.0.
The details of
the survey revealed that the present situation index (-1.7 points to 140.2 this
month) and the expectations index (-12.6 points to 81.1) both declined this
month.
Commenting on
the results of the last survey, Dana M. Peterson, Chief Economist at The
Conference Board, noted that the ecent rebound in consumer confidence was not
sustained in December as the CB’s consumer confidence indicator dropped back to
the middle of the range that had prevailed over the past two years. “While weaker
consumer assessments of the present situation and expectations contributed to
the decline, the expectations component saw the sharpest drop,” she added. “Compared
to last month, consumers in December were substantially less optimistic about
future business conditions and incomes. Moreover, pessimism about future
employment prospects returned after cautious optimism prevailed in October and
November.”