Mass. consumer confidence drops sharply

The Massachusetts Consumer Confidence Index plummeted 20 points since October, the largest one-quarter drop in seven years.

The index is published quarterly by Mass Insight, a Boston-based firm that organizes public-private initiatives on competitive issues affecting Massachusetts.

The latest reading of the consumer confidence index, taken in late January, was 62, down from a previous reading of 82, taken in October, and down from a 92 reading, taken in January 2007, Mass Insight said.

Consumer confidence is at its lowest point since October 1992, said Mass Insight, which noted that many national and regional economists believe that the US economy is likely in recession, due largely to the credit crisis and sagging home values.

“We are entering into a period of credit-induced economic weakness,” New England Economic Project past-President Frederick S. Breimyer said in a statement. “The probability of recession exceeds 50 percent. House prices are likely to fall at least through next year.”
(By Chris Reidy, Globe staff)