The Conference Board Consumer Confidence Index slipped to a reading of 52.5 in December, down from November's figure of 54.3.
The percentage of consumers claiming business conditions are "bad" decreased to 41.2% from 42.9%, however, those claiming business conditions are "good" declined to 7.5% from 8.5%.
"Despite this month's modest decline, consumer confidence is no worse off today than it was a year ago," said Lynn Franco, director of the Consumer Research Center at The Conference Board. "Consumers' assessment of the current state of the economy and labor market remains tepid, and their outlook remains cautious. Thus, all signs continue to suggest that the economic expansion will continue well into 2011, but that the pace of growth will remain moderate."
The data released Tuesday morning is based on a representative sample of 5,000 U.S. households.