Consumer confidence falls to lowest level in 28 years
Published May 16, 2008 by CSBJ Staff
Confidence among U.S. consumers fell in May to the lowest level in 28 years, according to the Reuters/University of Michigan index of consumer sentiment.
The index decreased to 59.5, the worst since June 1980, from 62.6 in April. Since the index’s inception in 1952, there have only been five lower readings. The measure averaged 85.6 during 2007.
Consumer spending, the biggest part of the economy, is weakening as rapidly increasing food and fuel costs affect consumer behavior, particularly among lower-income Americans. Declining home prices and less accessible mortgage financing have prevented homeowners from borrowing against real estate equity to finance expensive consumer goods such as cars and major appliances.
Filed under CSBJ Daily, Economics