US consumer confidence falls sharply in December
US consumer confidence fell sharply in December to its lowest level
since August amid uncertainty about the “fiscal cliff” crisis, the
Conference Board said Thursday.
The closely-watched monthly survey said the consumer confidence index
dipped to 65.1, a drop from a downwardly revised 71.5 in November.
Analysts had expected the December figure to be 70.0.
December's figure is the lowest since August, when it stood at a
revised 61.3. Lynn Franco, the Conference Board's director of economic
indicators, said consumers' expectations had retreated sharply in
December, resulting in a decline in the overall index.
“The sudden turnaround in expectations was most likely caused by
uncertainty surrounding the fiscal cliff,” Franco said in a statement.
With an end-of-year deadline just days away, politicians in
Washington have yet to strike a deal to keep stiff tax hikes and drastic
budget cuts from taking effect next month. Experts say going over the
“cliff” could take the world's biggest economy back into recession.
Franco added that a similar decline was experienced in August 2011
during debt ceiling discussions in Washington.
“While consumers are quite negative about the short-term outlook,
they are more upbeat than last month about business and labor market
conditions,” Franco said.
AFP
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