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Consumer confidence hits 5-month low

Published December 21, 2012 9:56 am

This is an archived article that was published on sltrib.com in 2012, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Washington • Confidence among U.S. consumers has sunk to its lowest point since July, according to a monthly index.

The University of Michigan says its consumer sentiment index for December fell to 72.9, a sharp drop from the November reading of 82.7. The November figure was a five-year high.

Peter Newland, an economist at Barclays, says consumer confidence has dropped because of uncertainty over whether Congress and the Obama administration will reach a budget deal to avert sharp tax increases and government spending cuts set to take effect in January.

Economists at Stone & McCarthy say confidence could fall further if the standoff over the "fiscal cliff" persists into 2013.