Given (Federal Reserve Chairman Alan Greenspan's) concerns regarding consumer attitudes this development has to be seen as worrisome.
Consumers still remain optimistic about the future despite having some concerns about the present. This is very typical of a business cycle turning point,
These data are consistent with slightly better pricing power for both importers and exporters, which reflects the improvement in international economic activity. However, the gains are sufficiently restrained as to not cause any concerns about broader based measures of inflation.
It's unclear whether the declines are related to year-end concerns or to a more general softening in manufacturing activity, but they do add evidence to the (Fed's) forecast for slower growth going forward.