Consumer Confidence Index

U.S. consumer confidence fell more than expected in January as energy prices rose and stocks declined. The University of Michigan's final index of consumer sentiment for the month dropped to 95.5 from 97.1 in December. January's sentiment reading exceeds the 88.1 average since a monthly version of the index began in 1978.

WASHINGTON -- Despite dark clouds in the global and U.S. economies, American consumers are feeling more upbeat than they have at any time since the fall of 2007. That is according to an unexpectedly strong reading of consumer sentiment from the University of Michigan and Thomson Reuters, released Friday. The report suggests that the holiday shopping season could turn out stronger than forecast. The widely followed index jumped to 83.1 in October -- a nearly five-point gain from the previous month and the highest since September 2007.  Measures of both components of the index -- people's assessment of their current financial conditions and future expectations -- went up over the month.

Fabian Linden, 79, an economist who developed the consumer confidence index of the research organization known as the Conference Board. One of the first American economists to examine consumer attitudes and buying plans as a means of predicting swings in the U.S. economy, Linden developed the highly respected index in 1967. He joined the Conference Board in 1957 and until recently served as executive director of its Consumer Research Center.

Here's your tired-of-being-blond Tuesday roundup of consumer news from around the Web: -- There will always be Barbie. Strong holiday demand for everyone's favorite doll helped push Mattel's fourth-quarter profit up a better-than-expected 14%. But the company reported that its U.S. sales dipped and weakness continued at its Fisher-Price unit. The holiday quarter is crucial for toy makers, who can make up to half of their annual sales during the period. Mattel, which is the No. 1 U.S. toy maker, says its net income rose to $370.6 million for the period ended Dec. 31. That's up from $325.2 million a year ago. A 2% drop in U.S. sales was offset by stronger results overseas, where revenue rose 5%. (Associated Press)

Concerns that consumers won't help drive a speedy and strong economic recovery escalated after a widely watched barometer of confidence fell unexpectedly this month. The Conference Board said its consumer confidence index dropped to 53.1 in September, down from a revised 54.5 in August. Economists surveyed by Thomson Reuters had expected a reading of 57. Among the worrisome signs in the Conference Board's release were that shoppers' spending intentions declined for big-ticket purchases: cars, homes and major appliances.

U.S. consumer sentiment fell in October as rising energy costs and persistent job worries made Americans less optimistic about the future, according to a survey released Friday. The University of Michigan said its consumer confidence index dropped to 91.7 in October, down from 94.2 in September but higher than a preliminary reading of 87.5. Analysts in a Reuters poll had forecast that the index would slip to 88. The measure of current conditions climbed to 104 from 103.

Consumers are feeling better about the economy, according to the monthly survey from the Conference Board that shows confidence levels near the post-recession peak. The Consumer Confidence index stood at 64.5 in December, up nearly 10 points from a revised 55.2 in November. That month was itself a 15-point gain from October's 40.9, the lowest level since the recession. Although the index is still below the 90 level that economists consider the threshold for a stable economy, December's rating that was released Tuesday was the highest since 66 in April.

Turmoil is spreading through the Middle East, the federal budget deficit is soaring and housing prices are falling, but consumers still feel as though things are better than they have been in three years, according to one closely watched measure. The consumer confidence index from the Conference Board jumped in February to its highest point since February 2008, in the early days of the deep recession and before the financial crisis hit, the nonprofit business research group said Tuesday.

Consumer confidence and expectations have risen, and more employers are planning to hire workers in 2010, according to studies released Tuesday, signaling increasing economic strength. A consumer expectations index formulated by the Conference Board rose to its highest level in two years, but Americans still feel pessimistic about their current state. The nonprofit organization's "present situation index" fell to its lowest point in 26 years. "While the worst of the economic times are behind us, it's not euphoria," said Lynn Franco, director of the board's Consumer Research Center.

The week ahead TUESDAY Standard & Poor's/Case- Shiller releases its October index of home prices. The Conference Board releases its December consumer confidence index. WEDNESDAY The Institute for Supply Management and Chicago and Kingsbury International release the Chicago PMI, a monthly measure of business conditions based on surveys of purchasing managers across Illinois, Indiana and Michigan. THURSDAY U.S. Department of Labor releases initial unemployment claims data.

Concerns that consumers won't help drive a speedy and strong economic recovery escalated after a widely watched barometer of confidence fell unexpectedly this month. The Conference Board said its consumer confidence index dropped to 53.1 in September, down from a revised 54.5 in August. Economists surveyed by Thomson Reuters had expected a reading of 57. Among the worrisome signs in the Conference Board's release were that shoppers' spending intentions declined for big-ticket purchases: cars, homes and major appliances.

Investors are uneasy going into this week, which will bring two reports on April home sales and the latest assessment of consumer confidence. They're also nervous about next week's widely expected bankruptcy filing by General Motors Corp. "There are some big, big, big issues going on right now," said Tommy Williams, president of Williams Financial Advisors in Shreveport, La. "I don't think any one of them are going away this summer." The major indicators managed to eke out gains last week.

Americans are in no mood to spend their way out of this recession. The Conference Board said its consumer confidence index edged down to 37.7 in January from a revised 38.6 in December, lower than the reading of 39 that economists surveyed by Thomson Reuters had expected. In recent months the index has hit its lowest troughs since it began in 1967, and is hovering at less than half its level of January 2007, when it was 87.3.

Layoffs, plunging home prices and tumbling investments have pushed consumer pessimism to record levels in October, a private research group said Tuesday. The Conference Board said the consumer confidence index fell to 38, down from a revised 61.4 in September and significantly below analysts' expectations of 52. That's the lowest level for the index since the Conference Board began tracking consumer sentiment in 1967, and the third-steepest drop. A year ago, the index stood at 95.2.