Reply #7: After holiday spree, doubts about economy linger [View All]

[ozymandius]

This is a paradox. Holiday spending experienced vigorous growth, yet people are pessimistic about jobs in view of statically high unemployment.

The Conference Board, a private research group, said its Consumer Confidence Index fell to 52.5 in December, down from a revised 54.3 in the November survey. It takes a reading of 90 to indicate a healthy economy. The last time the index was that high was in December 2007, just as the recession began.

Among the 5,000 people surveyed this month, many expressed concerns about jobs. Fewer see them as "plentiful." More described them as "hard to get."

The unemployment rate rose to 9.8 percent in November, and only 39,000 net jobs were created that month.

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Home price declines and the associated negative "wealth effect" probably contributed to the overall feeling of consumer pessimism.