From yesterday’s monthly report on consumer confidence via Reuters and the University of Michigan, it looks as though rising stock prices have done about all they can do to lift the mood of the American consumer, a development that bears only a loose correlation to how much money they spend at the end of the year, goaded into action by retailers.
The consumer confidence index fell for the first time in four months, down from 54.3 in November to 52.5 in December, as job worries are hindering confidence if not consumption, holiday sales are seeming to set new records every day. Not surprisingly, after rising over the last year, the percentage of respondents planning to buy a home is back to where it was a year ago, that is, when it looked like the housing rebound was more permanent.
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