Confidence among American consumers dropped unexpectedly this month, with expectations growing bleaker for the economic situation in the new year.
An index of sentiment published by research group the Conference Board dropped 8.1 points to 104.7, defying hopes for an increase, according to a consensus of economists compiled by The Wall Street Journal. The expectations index–measuring consumers’ near-term confidence in income, business and the jobs market–fell 12.6 points to 81.1, taking it close to the level that often signals recession, the Conference Board said.
“The recent rebound in consumer confidence was not sustained in December, as the index dropped back to the middle of the range that has prevailed over the past two years,” said Dana M. Peterson, chief economist at The Conference Board.
