New York ? Consumer confidence hit an all-time low in December, dropping further in the face of rising layoffs, in yet another sign that consumer spending is unlikely to pull the U.S. out of a yearlong recession any time soon.

Consumers have been nervous about spending for months — putting off big-ticket purchases, forgoing new clothes and choosing store brands at the grocery store — all of which may make this the worst holiday season for retailers in decades.

The Consumer Confidence Index measured by the Conference Board, a private research group, fell to 38 in December from a revised 44.7 in November. That is its lowest point since the group began compiling the index in 1967, and below the previous low of 38.8 in October. Economists surveyed by Thomson Reuters had expected the index to rise incrementally to 45.

“Deepening job insecurity and falling asset prices are outweighing any optimism consumers may have derived from falling gas prices,” said Dana Saporta, U.S. economist at investment bank Dresdner Kleinwort.

The unemployment rate hit a 15-year high in November, and economists expect additional job losses in the first half of 2009. Those saying in the Conference Board survey that jobs are “hard to get” rose to 42 percent in December from 37.1 percent in November, when the unemployment rate stood at 6.7 percent.

Those claiming business conditions are “bad” increased to 46 percent in December from 40.6 percent in November. Consumer spending is likely to keep dropping well into next year, Saporta said, meaning the recession will last at least into the first half of 2009.

The conditions that began the recession persist, especially deflating home prices. A measure of October home prices dropped by the sharpest annual rate on record. The Standard & Poor’s/Case-Shiller 20-city housing index fell by 18 percent from October 2007, the largest drop since its inception in 2000. The 10-city index tumbled 19.1 percent, its biggest decline in its 21-year history.

The Federal Reserve said Tuesday it will begin purchasing up to $500 billion in mortgage-backed securities early next month in an effort to bolster the housing market. The Fed first announced that it would purchase the securities in late November but did not say when they would begin.

With credit tight and even steep discounts failing to spur spending from tapped-out consumers, economists are looking to government spending to restart the economy. Aides to President-elect Barack Obama are discussing a new stimulus package that could be as large as $775 billion.