Consumer Confidence Takes Another Blow

Washington, DC, January 11, 2008—Consumer confidence hit an all-time low in early January, according to the RBC Cash Index.

The index fell to 56.3 in early January compared to a reading of 65.9 in December. It was the worst reading since the index was started in 2002.

Slower hiring, the distressed housing market, high energy prices, and speculation about a recession are all causing the gloominess.

A year ago, confidence stood at 95.3.

Sentiment about the next six months fell into negative territory in early January at -8.2 percent.

A gauge of attitudes about investing, including comfort in making major purchases, dipped to 76.3 in January. That was the lowest since May 2005.

The survey is benchmarked to a reading of 100 when the survey was formed in 2002.