An assessment of current economic conditions fell to minus 57.1 from minus 56.8, today’s report showed, putting it 25.7 points below its long-term average.

“Buy-in on this measure is critical if consumer sentiment is truly to break out in 2014,” said Gary Langer, president of Langer Research Associates LLC in New York, which produces the data for Bloomberg. “The job market is a key challenge. Even with its recent gains, unemployment remains high enough to make the recovery story a tough sell to many Americans.”

Holiday Sales

Retail sales rose 3.5 percent during the holiday season, helped by deep discounts at malls and purchases of children’s apparel and jewelry, MasterCard Advisors SpendingPulse said. Sales of holiday-related categories, such as clothing, electronics and luxury goods, rose 2.3 percent from Nov. 1 through Dec. 24 compared with a year earlier, the Purchase, New York-based research firm said Dec. 26. SpendingPulse tracks total U.S. sales at stores and online via all payment forms.

Consumers are also buying more cars. Auto sales advanced to a 16.3 million annualized rate in November, the highest since May 2007, according to data from Ward’s Automotive Group.

The comfort index, based on weekly polling since 1985, remains below its average of minus 16.4 in data going back to December 1985. For the final week of 2007, during the month the U.S. slipped into a recession, it measured minus 20, almost nine points higher than the end of 2013.

Optimism waned last week among homeowners, college graduates, Democrats and full-time workers.

Income Groups

Sentiment flagged in most income brackets, including those making less than $40,000 a year and more than $100,000 a year. Among highest-income households, the index fell to 14.4, the lowest since the week ended Dec. 1. The gauge of high-income earners has been positive since early February.

Respondents 65 and older also reported less confidence, with their measure falling to minus 30.5, the lowest since Nov. 3. Sentiment deteriorated among women to minus 37.4, the weakest reading in a month.