Consumer confidence data paints pessimistic picture

02.25.09
By Lewis Green

Consumer confidence tumbled this month as households maintain a bleak short-term outlook.

According to the Conference Board Consumer Confidence Index, February's reading hit an all-time low dropping to 25 from 37.4 last month.

The index measures consumers' appraisal of current broad economic conditions based on data from a 5,000-household sample.

"Looking ahead, increasing concerns about business conditions, employment and earnings have further sapped confidence and driven expectations to their lowest level ever," says Lynn Franco, director of the Conference Board Consumer Research Center.

"All in all, not only do consumers feel overall economic conditions have grown more dire, but just as disconcerting, they anticipate no improvement in conditions over the next six months," she notes.

Survey results show that more consumers are finding jobs "hard to get" while fewer are expecting to see an increase in their pay.

With consumer confidence low and spending curtailed, how do you go about buying everyday necessities?

American Express, through its reward benefits program, is trying to help consumers use points earned from credit card charges to buy basic goods.

The new "practical rewards" added to the American Express program addresses increasing feedback from cardholders requesting benefits that will help them survive the economic downturn.

New options to use rewards points at the gas station, to buy household appliances and for more casual dining and retailing options are a few of the additions announced by the credit card company.

Microwaves, dishwashers, and dehumidifiers are new household items that can be purchased through the program. And while filling up the tank undoubtedly makes a dent in drivers' wallets, the option to use points earned with your credit card to buy gas may help alleviate one weekly budget expense.

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More Americans are finding jobs hard to get