Consumer Confidence Plunges to 26-Year Low

Consumer confidence is at its lowest level in more than 26 years, a Reuters/University of Michigan poll says. The index of consumer sentiment fell to 62.6, down from 69.5 in March and well below the consensus figure of 63.2 Bloomberg:

Consumers are growing increasingly anxious as the economy has lost almost a quarter million jobs so far this year, the cost of refueling a car is up 17 per cent and property values fall. Sales of big-ticket items such as houses and cars have weakened as a result, contributing to a slowdown in spending that may bring an end to the six-year expansion.

“Consumers are feeling the pinch, not only from the labour market, but also from prices,” Aaron Smith, an economist at Moody’s Economy.com in West Chester, Pennsylvania, said in a Bloomberg Television interview. “There’s a squeeze on incomes from two sides.”

 

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