This compares to 132.6 in November and is a much bigger decline than analysts had predicted. More people work Meanwhile, the US Labor Department reported that new claims for unemployment benefits fell sharply last week. They declined by 23,000 to a seasonally adjusted 333,000, though analysts said the figure should be treated with caution because, during the Christmas break, many states provided estimates for claims rather than actual numbers of real claims. The more stable four-week average of jobless claims declined to 340,750, the lowest point since mid November. The drop in consumer confidence indicates that the slowdown in the US economy is set to continue.
Consumer spending makes up two-thirds of economic output.
Both components of the index were lower. One survey looks at how people view the state of the overall economy, the so-called present situation index. It fell to 177 from 179.7 in November. The other poll looked at people's estimates of their own short-term economic position. Here consumer confidence was down to 95.8 from 101.2.