Rasmussen Consumer Index
Investor Confidence Keeps Sinking, 72% of Consumers Say Economy Getting Worse

Monday, December 08, 2008 Email to a FriendAdvertisement
Friday’s government report that over half-a-million jobs were lost last month has pushed consumer and investor confidence down to new record lows.

The Rasmussen Investor Index, which measures investor confidence on a daily basis, dropped another point on Monday to set a record low for the second straight day. At 60.1, the Investor Index has now fallen for five straight days. It is down five points since Friday’s report on unemployment, down eleven points over the past month and down thirty-nine points over the past three months.

Prior to this year, the Rasmussen Investor Index had never fallen below 91.1. It is now thirty-one points below that level.

The Rasmussen Consumer Index stabilized on Monday after falling to a record low on Sunday. At 58.7, the Consumer Index has fallen four points since Friday’s report. It is down six points over the past month and twenty-eight points over the past three months.

Prior to this year, the Rasmussen Consumer Index had never fallen below 83.2. It is now twenty-four points below that level. Prior to yesterday, the Consumer Index had never fallen below 60.0.

The Index data is based upon nightly telephone surveys and reported on a three-day rolling average basis. Today is the first update based entirely upon data collected since Friday’s government report was released.

Just 8% of Americans now say the economy is getting better while 72% say it is getting worse.

Only 34% now rate their own personal finances as good or excellent, down from 41% when the year began.

Before Thanksgiving, 66% of Americans said they expected to spend less on holiday shopping this year. The first post-Thanksgiving survey found that shoppers are feeling a little more generous, with 60% who now say they will be spending less this year.

Sometimes, it is difficult to put the daily numbers in context without viewing a longer-term trend. For the full-month of November, confidence fell to the lowest levels recorded in the seven-year history of the Rasmussen Index. That’s the sixth time in nine months that a new record low has been establish. Since January 2007, confidence has crashed with the Consumer Index falling 46% and the Investor Index falling more than 50%. Bleak as those numbers were in November, the Consumer Index has stayed below the November average for every day of December.

Each month, Rasmussen Reports releases an Employment Index on the Tuesday before the government’s official report on the subject. Last week’s data showed that just 14% of workers said their firms were hiring while 24% said their firms were laying people off. Those were by far the most pessimistic numbers ever recorded. Overall, one-out-of-four workers said that they were worried about losing their own job.

Fifty-five percent (55%) of voters nationwide are at least somewhat confident that President-elect Obama and his team can guide the nation out of these difficult economic times.

The Rasmussen Consumer Index and Investor Index are derived from nightly telephone surveys of 500 adults and reported on a three-day rolling average basis. The baseline for the Index was established at 100.0 in October 2001. Readings above 100.0 indicate that confidence is higher than in the baseline month. Detailed supplemental information is available for Premium Members. Historical data for the Consumer and Investor indexes as well as attitudes about the economy and personal finances are also available to Premium Members.

The Rasmussen Consumer Index reached its highest level ever at 127.0 on January 6, 2004. The all-time low was reached on December 7, 2008 at 58.4.

The Rasmussen Investor Index reached its highest level ever at 150.9 on January 7, 2004. The lowest level ever measured was 60.1 on December 8, 2008.

The baseline for the Rasmussen Consumer Index was established at 100.0 in October 2001. The current reading of 58.7 that overall levels of economic confidence are significantly lower today than they were in the aftermath of the 9-11 terrorist attacks.

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