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Another debt ceiling debacle could sink the economy

Last year's Congressional debt standoff hurt consumer confidence more than the collapse of Lehman Brothers, Betsey Johnson and Justin Wolfers write. This time could be worse.  Read more at Counterparties  

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Consumer confidence posts surprise decline

Women walk through a shopping mall in San Francisco, California January 5, 2012.  REUTERS/Robert Galbraith

Women walk through a shopping mall in San Francisco, California January 5, 2012.

Credit: Reuters/Robert Galbraith

WASHINGTON | Tue Jan 31, 2012 11:01am EST

WASHINGTON (Reuters) - Consumer confidence unexpectedly fell in January as more Americans worried about the country's weak job market, according to a private sector report released on Tuesday.

The Conference Board, an industry group, said its index of consumer attitudes dropped to 61.1 from an upwardly revised 64.8 the month before.

Economists had expected a reading of 68.0, according to a Reuters poll. December was originally reported as 64.5.

Consumers' labor market assessment worsened. The "jobs hard to get" index increased to 43.5 percent from 41.6 percent the month before. The "jobs plentiful" index also darkened, dropping to 6.1 percent from 6.6 percent.

The expectations index fell to 76.2 from 77.0, while the present situation index decreased to 38.4 from 46.5.

Consumers also felt worse about price increases with expectations for inflation in the coming 12 months up to 5.5 percent from 5.3 percent.

(Reporting by Jason Lange; Editing by Padraic Cassidy)

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Comments (4)
Mackfab wrote:
broke consumers have unexpected decline in confidence….
yes, this would be shocking………………..

Jan 31, 2012 10:30am EST  --  Report as abuse
Crash866 wrote:
Come USAprag tell us how good things are…..

Jan 31, 2012 10:53am EST  --  Report as abuse
David_P wrote:
Let’s see: Gasoline, Food, and most consumer costs skyrocketing; unemployment still high; home prices still falling. Does anyone think consumer confidence should be increasing. The only surprise that it’s declining is that it’s a surprise to some.

Jan 31, 2012 10:58am EST  --  Report as abuse
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