The November report also shows the Employment Index is up slightly, (50.3 from 49.5 the prior month, and 49.0 one year ago) capping three months of modest gains. In the past 30 days the proportion of Americans who have lost their job has fallen to 4.9 percent, down from 6.7 percent a month earlier. The number of Americans who have started a job in the past 30 days (5.5%) outpaced those who have lost their job (4.9%) by a small margin. The job loss numbers for October were at their lowest level since April and are down substantially from one year ago (7.1%).

While the Consumer Reports Past 30-Day Retail Index shows spending was up in October (10.9, up from the prior month's 9.9), as Black Friday approaches there are some troubling signs for retailers. The Consumer Reports Next 30-Day Retail Index for November (reflecting planned November activity) is down (8.0) versus a year ago (9.0), led by the soft interest in planned purchasing of personal electronics relative to last year (18.2% versus 24.9%, respectively).

“Consumers are telling us that things are getting better economically. As we enter the holiday season there is evidence consumers are still holding back. Planned purchasing in November of personal electronics, one of the most popular holiday gift categories, is is down significantly from a year ago," said Ed Farrell, a director of the Consumer Reports National Research Center.

The Consumer Reports Index, conducted by the Consumer Reports National Research Center, is a monthly telephone and cell phone poll of a nationally representative probability sample of American adults. A total of 1,259 interviews were completed (1,008 telephone and 251 cell phone) among adults aged 18+. Interviewing took place between October 28 – October 31, 2010. The margin of error is +/- 2.8 points at a 95% confidence level.—Mandy Walker