NEW YORK—Despite a better-than-expected 2010 holiday shopping season, consumer confidence took a small tumble this month as consumers remain concerned about the availability of jobs heading into 2011.
According to the Conference Board, U.S. consumer confidence fell to 52.5 in December from an optimistic reading of 54.3 in November, on concerns regarding the growth of the U.S. economy.
“Despite this month’s modest decline, consumer confidence is no worse off today than it was a year ago,” said Lynn Franco, Director of Consumer Research Center at the Conference Board, in a statement.
“Consumers’ assessment of the current state of the economy and labor market remains tepid, and their outlook remains 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.”
The biggest worry surrounding consumers remains unemployment and income, despite increased spending this holiday season. Last month’s official U.S. unemployment rate reported by the Bureau of Labor Statistics was 9.8 percent nationally.
In a separate report this week from MasterCard SpendingPulse, retail sales from Nov. 5 to Dec. 24 increased 5.5 percent from 2009, the highest year-over-year sales rise since 2005. These figures exclude automobile sales, which also went up during the period.
“The 2010 holiday period is categorized by strong year-over-year growth in Apparel and continued strength in eCommerce. We also saw a noticeable return in spending in the larger ticket items, as exemplified by the solid growth in jewelry, luxury and even the furniture category,” said Michael McNamara, Vice President of Research and Analysis for SpendingPulse in a press release.
According to the SpendingPulse study, holiday shopping this year started earlier than ever—in the first week of November—as retailers rolled out early promotions to attract sales.
According to the Conference Board, U.S. consumer confidence fell to 52.5 in December from an optimistic reading of 54.3 in November, on concerns regarding the growth of the U.S. economy.
“Despite this month’s modest decline, consumer confidence is no worse off today than it was a year ago,” said Lynn Franco, Director of Consumer Research Center at the Conference Board, in a statement.
“Consumers’ assessment of the current state of the economy and labor market remains tepid, and their outlook remains 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.”
The biggest worry surrounding consumers remains unemployment and income, despite increased spending this holiday season. Last month’s official U.S. unemployment rate reported by the Bureau of Labor Statistics was 9.8 percent nationally.
In a separate report this week from MasterCard SpendingPulse, retail sales from Nov. 5 to Dec. 24 increased 5.5 percent from 2009, the highest year-over-year sales rise since 2005. These figures exclude automobile sales, which also went up during the period.
“The 2010 holiday period is categorized by strong year-over-year growth in Apparel and continued strength in eCommerce. We also saw a noticeable return in spending in the larger ticket items, as exemplified by the solid growth in jewelry, luxury and even the furniture category,” said Michael McNamara, Vice President of Research and Analysis for SpendingPulse in a press release.
According to the SpendingPulse study, holiday shopping this year started earlier than ever—in the first week of November—as retailers rolled out early promotions to attract sales.
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