Consumer confidence fell in August to the lowest point since April 2009. These findings were released by the Conference Board, a business research group in New York. Possible reasons are Standard and Poor's downgrade of the U.S. credit rating, political wrangling over the debt ceiling, a roller coaster month for stocks and 9.1% unemployment.

Consumer confidence is an economic indicator which measures the consumer's outlook toward the overall economy as well as personal finances. Government agencies, retailers, banks, manufacturers and investors use consumer confidence ratings to plan their operations. For instance, those who produce goods will reduce production when consumer confidence is low. Consumer spending accounts for 70% of the nation's economic activity.