U.S. consumer confidence
declined to a nine-year low in January as more people said they
were concerned a deteriorating economy would threaten jobs and
reduce pay.
The Conference Board’s consumer confidence index fell to 79,
the lowest since November 1993, from 80.7 in December. Economists
had expected the private research group’s index would fall to
78.4, according to the median of 60 forecasts. The decline comes
during a month in which energy costs rose, the threat of war with
Iraq intensified and stock prices fell.
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Confidence has fallen in seven of the last eight months and
may temper purchases by households. So far, consumer spending has
been helped by strength in the housing market, where new home
sales rose to a record last month.
The lowest mortgage rates in four decades are making housing
an attractive investment alternative as the stock market stumbles.
New home sales in 2002 were the highest on record, the Commerce
Department said. New homes sold at a 1.082 million-unit annual
rate last month. Some 976,000 new homes were sold last year,
surpassing the 2001 record of 908,000.
Bloomberg News
