A rough new year for consumers

The American consumer has been the hero of the economy for the past few years, accounting for some 70 percent of U.S. economic activity. Even after gasoline prices spiked in the wake of Hurricanes Katrina and Rita — causing a decade-low in consumer-sentiment indexes — shoppers kept their wallets open. The U.S. economy grew at a 4.3 percent annual pace in the third quarter, with consumer spending accounting for 2.97 percentage points of the growth.

But will consumers maintain their confidence and free-spending ways in the coming year, as they’re hit with higher prices on such basics as paper towels and beer, as well as for energy, credit, and health care? Here’s a look at some of the ways consumers will be getting squeezed.

MSNBC