Americans’ economic enthusiasm has cooled while the busiest shopping season of the year is well underway and retailers have dollar signs dancing in their heads. According to the most recent results of the RBC CASH (Consumer Attitudes and Spending by Household) Index, which measured the attitudes of 1,000 Americans earlier this week, consumer confidence dropped more than five points this month.
Although Americans’ assessments of job security rose slightly, overall consumer sentiment dropped, as consumers expressed concern about current and future economic conditions, as well as investing. As a result, the RBC CASH Index for December released today by RBC Financial Group, stands at 86.9, compared to 92.4 in November.
The downturn this month breaks a three-year trend of increasing consumer confidence in the month of December, as 2003, 2004 and 2005 all exhibited gains in consumer confidence from November to December. “The dip in consumer confidence is consistent with our view that consumer demand will slow in the coming months,” said T.J. Marta, Economic and Fixed Income Strategist for RBC Capital Markets. “However, the strong jobs environment underpins our forecast that the economy is merely moderating to a sustainable growth rate rather than spiraling into a significant downtrend.”
The RBC CASH Index is a monthly national survey of consumer attitudes on the current and future state of local economies, personal finance situations, savings and confidence to make large investments. The Index is composed of four sub-indices: RBC Current Conditions Index; RBC Expectations Index; RBC Investment Index; and, RBC Jobs Index. The Index is benchmarked to a baseline of 100 assigned at its introduction in January 2002. This month’s findings are based on a representative nationwide sample of 1,000 U.S. adults polled from December 4 – 6, 2006, by survey-based research company Ipsos Public Affairs.
U.S. consumer confidence flagging: RBC
Monthly survey reports overall drop in consumer sentiment
- By: IE Staff
- December 8, 2006 December 8, 2006
- 14:19