Influx

Consumer confidence sank to a quarter century low in the April 2008 survey.

The decline was due to high fuel and food prices as well as shrinking income gains and falling home values. “The recent acceleration in the loss in confidence indicates a longer and potentially deeper recession,” according to Richard Curtin, the Director of the Reuters/University of Michigan Surveys of Consumers. Rising inflation, higher joblessness, and smaller income gains has made most consumers more cautious spenders. “Rising uncertainty about future living standards has caused consumers to adopt more prudent spending plans and become more wary of incurring new debt,”Curtin said.

Press Release from Reuters

Posted by Ed Cotton