Consumer confidence falls in December

Many Americans opened their wallets during the Christmas shopping season, but now some of those people are concerned that the economy could get worse next year. Consumer confidence in December fell to 52.5 from a revised 54.3 in November, according to the Conference Board, a private research group. The survey must reach 90 to indicate that the economy is healthy.

The continuing high rate of unemployment and other economic challenges are of huge concern to many consumers. But Lynn Franco, director of the Consumer Research Center at the Conference Board, said:

Despite this month’s modest decline, consumer confidence is no worse off today than it was a year ago. Consumers’ assessment of the current state of the economy and the labor market remains tepid, and their outlook cautious. Thus, all signs continue to suggest that the economic expansion will continue well into 2011, but that the pace of growth will remain moderate.

Because of pessimism about the economy many consumers who spent more liberally over the holidays may begin to rein in spending again and try to beef up their savings while they wait to see where the economy heads. If you are taking a more cautious approach and want to look at building more of a savings, you can shop for savings rates here.

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