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Consumer Confidence Hits Seven-Month Low

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We recently did another post on the big – or more likely the not-so-big 2013 holiday shopping season – but another indicator was released this week which could impact sales.

The Conference Board’s consumer confidence index fell from 72.4 last month to 70.4 – nearly ten points below its September reading of 80.2.

That’s it’s lowest reading in seven months – and its biggest expectations miss in eight months.

“With such uncertainty prevailing, this could be a challenging holiday season for retailers,” said Lynn Franco, the organization’s director of economic indicators.

Consumer confidence is critical because it drives retail spending Рwhich is responsible for roughly seventy percent of the American economy. Retail spending in turn drives production, which in turn drives job growth, etc.

A dip in consumer confidence is especially troublesome at the outset of the peak holiday shopping season – when many retailers do as much as 40 percent of their business.

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