ARLINGTON, Va. --(Business Wire)-- Dec 23, 2008 Consumer confidence in the overall economy decreased slightly in December, according to figures released today by the Consumer Electronics Association (CEA)( and CNET (www.CNET.com). The CEA-CNET Indexes also showed consumers are slightly less likely to spend on consumer electronics (CE) and technology products.
The CEA-CNET Index of Consumer Expectations (ICE) reached 167.9 in December, a decrease of 2.1 points from last month. The ICE, which measures consumers' confidence in the overall economy, is down year-over-year by 6 points.
"While the new administration may bring hope of an economic turnaround, consumers continue to worry over rising unemployment rates," said Claudia Haase, CNET's Director of Research.
Consumer confidence in CE and technology took a much more dramatic dip in December. The CEA-CNET Index of Consumer Technology Expectations (ICTE), which measures consumers' confidence in consumer electronics and technology, decreased 7 percent, reaching 78.3. Looking at the index the same time last year, it shows a decrease of 13 percent.
"Although we have seen consumer confidence dip lower in the past two years, we were hoping that confidence would rebound or at the very least, remain flat during one of the busiest shopping seasons of the year. Unfortunately, we are also seeing a decline in tech confidence which is tied directly to overall consumer confidence," said Haase. "For many retailers, the holiday season is the time when they expect to report an increase in sales, but it appears that economic factors may overshadow the expected boost from the holiday season."
The CEA-CNET Indexes are comprised of the ICE and the ICTE, both of which are updated on a monthly basis through consumer surveys. New data is released on the fourth Tuesday of each month. CEA and CNET have been tracking index data since January 2007.