A survey has shown that US consumers greeted the new year with historically low confidence as the economy struggled in recession, while their outlook remains 'quite pessimistic'.
The Conference Board research group said its consumer confidence index tumbled to 37.7 in January, beating the previous record low of 38.6 in December. Most analysts had expected a slight gain in January.
This was the second straight monthly decline and the lowest confidence reading since the research firm began tracking the data in 1967.
Consumers, hit by rising unemployment and tight credit conditions as the world's largest economy began its second year in recession, grew more anxious about the coming months, the survey found. The survey's cut-off date was January 21, the day after President Barack Obama took office pledging to make reviving the economy his top priority.
'Consumers have begun the new year with the same degree of pessimism that they exhibited in the final months of 2008,' Lynn Franco, research director at the Conference Board, said in a statement.
Obama in talks on boost package
US President Barack Obama will hold talks later today with congressional Republicans who complain his $825 billion stimulus plan is too expensive, unworkable and full of unneeded spending.
Obama is hoping for strong backing from opposition Republicans for the emergency economic plan, and warned yesterday after more grim economic news that the slumping economic climate showed the need for 'swift and extraordinary' action.
The House of Representatives is expected to vote tomorrow on the stimulus plan, with the Senate set to follow later with Obama pushing for a bill to be on his desk to sign before February 16.
Republicans lack the votes to defeat the stimulus bill on their own, but could slow its progress, especially in the Senate.
