Consumer Sentiment in U.S. Falls More than Forecast to Lowest in 26 Years

[marmar]

from Bloomberg:


U.S. Economy: Sentiment Weakens More Than Anticipated (Update2)

By Bob Willis

April 25 (Bloomberg) -- U.S. consumer confidence fell more than forecast in April to a 26-year low as record fuel prices and rising unemployment threatened to reduce spending.

The Reuters/University of Michigan sentiment index decreased to 62.6, from 69.5 the previous month. The measure was down from a preliminary estimate of 63.2 issued on April 11.

Consumers are growing increasingly anxious because the economy has lost almost a quarter million jobs so far this year, gasoline is up 17 percent and property values have fallen. Sales of houses and cars have declined as a result, contributing to a slowdown that may bring an end to the six-year expansion.

``Consumers are feeling the pinch, not only from the labor 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.''

Economists had forecast the consumer sentiment gauge would fall to 63.2 from 69.5 in March, according to the median of 60 projections in a Bloomberg News survey.

The index of consumer expectations for six months from now, which more closely projects the direction of consumer spending, dropped to 53.3 from 60.1 last month.

Stocks fell, pushing the Dow Jones Industrial Average down 56.2 points, or 0.4 percent, to 12,792.8 at 12:28 p.m. in New York.

Current Conditions

A measure of current conditions, which reflects Americans' perceptions of their financial situation and whether it's a good time to make big-ticket purchases like cars, decreased to 77 from 84.2 last month. .......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=ap4JffQHDqgE&refer=home

[Stuart G]

1. So much of economic news points to,,,,

the very worst outcome. It is like ..the perfect storm
...1. Leader who doesn't even know, or care
...2. Rapid increase in fuel prices
...3. Housing crises..puts people out of jobs in housing industry
...4. Banking crises related to housing..but still separate
...5. Resulting crises in confidence that predicts even worse
...6. Monetary crises due to very low value of dollar..