Lower prices thaw consumer fears

Consumer took some heart in December, as lower prices have provided a measure of relief to jittery Americans fretting about continued job losses and decreasing incomes.
DEC 23, 2008
Consumer took some heart in December, as lower prices have provided a measure of relief to jittery Americans fretting about continued job losses and decreasing incomes, according to The Reuters/University of Michigan Surveys of Consumers. Its index of consumer sentiment inched up to a reading of 60.1 in December, higher than the preliminary figure of 59.1 released earlier this month. Economists surveyed by Briefing.com Inc. of Chicago had forecast a reading of 58.8. The reading was from up the 55.3 reading recorded in November, a 28-year low. This month's figure is markedly below the 75.5 reading recorded in December 2007. Despite the improvement in December, total consumer spending is expected to decline by about 1% in 2009, which will be followed by an "unusually slow" recovery in 2010, Richard Curtin, director of the survey, said a statement. The index of consumer expectations, regarding the state of the economy six months from now, inched up to 54 in December from 53.9 in November. The consumer conditions index, which measures Americans' perceptions of their financial situation, jumped to 69.5, from 57.5 in November. Thompson Reuters is based in New York, and the University of Michigan is in Ann Arbor.

Latest News

SEC to lose Hester Peirce, deepening a commissioner crisis
SEC to lose Hester Peirce, deepening a commissioner crisis

The "Crypto Mom" departure would leave the SEC commission with just two members and no Democratic commissioners on the panel.

Florida B-D, RIA owner pitches bold long-term plan to sell to advisors
Florida B-D, RIA owner pitches bold long-term plan to sell to advisors

IFP Securities’ owner, Bill Hamm, has a long-term plan for the firm and its 279 financial advisors.

Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships
Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships

Meanwhile, a Osaic and Envestnet ink a new adaptive wealthtech partnership to better support the firm's 10,000-plus advisors, and RIA-focused VastAdvisor unveils native integrations with leading CRMs.

Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions
Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions

A former Alabama investment advisor and ex-Kestra rep has been permanently barred and penalized after clients he promised to protect got caught in a $2.6 million fraud.

Why the evolution of ETFs is changing the due diligence equation
Why the evolution of ETFs is changing the due diligence equation

As more active strategies get packaged into the ETF wrapper, advisors and investors have to look beyond expense ratios as the benchmark for value.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management