APRIL 2008 W5 ALERT
Consumer Confidence? Not So Much!
Consumer Survey Hits 5 Year Low
<April 29, 2008>The Conference Board has released their updated Consumer Confidence Index today showing yet another decline in the level of confidence consumers have in the state of the U.S. economy. With the index now at 62.3, down from 65.9 (1985=100), the drop in April came after an even sharper fall in March. This means that the index is now at its lowest level in five years, or as Reuters noted, its lowest since the onset of the U.S. launch of the war in Iraq.
Lynn Franco, Director of The Conference Board Consumer Research Center said, “This continued weakening suggests that not only has the feeble level of growth in the first quarter spilled over into the second quarter, but that economic conditions may have slowed even further. And, not only are lackluster business and job conditions eroding confidence, but rising gasoline prices are undoubtedly heightening concerns.”
The report also showed consumers expect inflation to rise with a rating of 6.8, which the Board notes was the level following Hurricane Katrina.
A separate survey conducted by ABC News and the Washington Post and reported by Reuters appears to corroborate the results with their results very close to a record low in consumer confidence. The index stands at -41 (ranges from -100 to 100) which is only 9 points away from a -50 reading back in early 1992.
78% of consumers told the ABC News/Washington Post survey takers that it is a bad time to spend money.