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

FINRA fines Vanguard $950,000 over decade of cost basis errors
FINRA fines Vanguard $950,000 over decade of cost basis errors

Faulty Forms 1099 and account statements reportedly left some Vanguard brokerage customers overpaying or underpaying taxes for over a decade.

More ETFs, more opportunity, more homework
More ETFs, more opportunity, more homework

The democratization of ETFs cuts both ways

Advisor moves: Raymond James, Baird add significant teams in latest recruiting push
Advisor moves: Raymond James, Baird add significant teams in latest recruiting push

Independent broker-dealers snap up experienced advisors as competition for established practices intensifies.

Wells Fargo names COO Scott Powell as its next chief risk officer
Wells Fargo names COO Scott Powell as its next chief risk officer

Derek Flowers, a nearly 30-year veteran, is set to retire in mid-January, handing the reins to the executive who helped lead the bank's regulatory turnaround.

Ameriprise runs advisor ads on ESPN, Golf Channel, CBS
Ameriprise runs advisor ads on ESPN, Golf Channel, CBS

The campaign spans broadcast TV and streaming, as the brokerage faces slowing client net flows and an $8.1 billion advisor team that left to launch an RIA this month.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains