Consumer confidence is falling

The U.S. is in the middle of an election year so it probably isn't a surprise that consumer confidence is in question or even that confidence has fallen in the past year. It is a surprise, however, how much consumer confidence has fallen in the past 12 months. According to BIGresearch, consumers are only half as confident as in 2007.

by Kristina Knight

The report finds that just over 25% are confident or overly confident in the economy for the month of February. In February 2007 more than 50% of consumers said they were confident in the economy.

Among the problems for consumers? A crashing housing market, high gas prices and huge credit debt.

One plus for the economy is tax season and another government rebate check expected to come in the Spring. Taxes are due April 15th and many Americans are already planning to spend that rebate check.

Phil Rist, Vice President of Strategy for BIGresearch said, "Many Americans will be wisely using their rebate checks to save, spend, and pay down debt, so the overall result will be positive for the U.S. economy. [S]ome will splurge on big ticket items, many. . .will use the checks for important day-to-day purchases."

Only about 30% of consumers say they will save their rebates while 40% say they will pay down debt (both credit cards and installment loans). About 14% said they would spend the rebates one necessary items.