Consumer News & Views
December, 2008

Consumer Confidence Jumps Finally. A closely watched measure of consumer confidence rose in November. The Conference Board reported that its Consumer Confidence Index rose to 44.9 in November from an all-time low of 38 in October. November’s read was better than economists had predicted. Despite the jump, consumer confidence remains shaken by the historic turmoil in the housing and financial markets.

President-elect Obama Steps Up. Since his election on November 4, President-elect Barack Obama has been focused on the national economy. Obama has sent strong signals to Wall Street and Main Street with his appointments of a seasoned economic team. It’s clear Mr. Obama understands the gravity of the nation’s economic situation and he is taking the necessary steps to hit the ground running on January 20, Inauguration Day.

Meanwhile, Consumers Remain Miffed. Despite the various bailout plans and Wall Street rescue efforts adopted by the lame duck Congress and Bush Administration, consumers are still huddled on the sidelines trying to keep their noses above the rising economic water line. The Bush Administration has thrown lifelines to Wall Street banks and insurance companies but the average consumer is drowning in the turbulent economic waters due to job losses, frozen credit, and rapidly declining investments. The latest $800 Billion stimulus plan put forward in late November by Treasury Secretary Paulson and the Federal Reserve does not appear to go far enough to satisfy consumers who remain uncertain about the economy and are unable to secure a mortgage loan, a car loan, or a college loan. This credit crunch will wreak havoc if not fixed quickly -- before January 20th. Also, the credit squeeze will result in a very poor Christmas shopping season for retailers who depend heavily on consumer spending to make their year-end business profits.

Are We Out of the Woods Yet? Not by a long shot, according to a poll of the American Consumer Council’s members. More than 70% of respondents feel that the American economy will “get worse before it gets better.” Only 22% of respondents indicated that the “economy will be stronger in 90 days.” So, the new Obama Administration will have its work cut out for them after January 20th as consumers adopt a “wait-and-see” attitude for the next three months.

Top Consumer Concerns for 2009. The top three concerns of consumers as we approach a new year, according to ACC’s November 10th poll, are: Job Loss, Mortgage Relief (Foreclosures); and Maintaining Healthcare Benefits.

ACC Invites Companies to apply for its Green Certification Program. The American Consumer Council launched its Green Certification program for companies that want to be certified for their Green practices and environmental compliance practices. For more information, visit our homepage at: www.americanconsumercouncil.org/green.