1. Consumers are uncertain about job stability

Unemployment rates have hit a plateau, with companies still reluctant to hire despite improved corporate earnings. In addition to high unemployment, many consumers are under-employed, perhaps working part time instead of full time, or having only one job in the household instead of two.

2. Consumers can’t count on their home equity for easy cash.

The dramatic drop in home values and tighter financing have removed a once-easy source of disposable income for homeowners: Cash-outs were only 18% of refinancing activity in 2010, compared with 90% in 2006, according to Wall Street Journal reports

3. Consumers are paying more for household goods—but they're not necessarily earning more.

Median household income has decreased 4.2% since 2007. U.S. wages were up 1.5% in 2010, but the U.S. Labor Department reports that wages have declined for many workers.

4. Consumers lack confidence, especially those who are less affluent.

The consumer confidence level is hovering near 70—far below 90, the typical level for a stable economy—and shows no signs of increasing any time soon.