The University of Michigan announced today that the Index of Consumer Sentiment fell to 62.6 in the April 2008 survey. This is down from the mid-April reading of 63.2 and March 2008's reading of 69.5. 62.6 is the lowest reading since a recession in March of 1982. Economists had expected the reading to come in at 63.2.
Here are a few highlights from the press release:
- The decline was due to high fuel and food prices as well as shrinking income gains and falling home values.
- Just three-in-ten consumers plan to spend the tax rebate in 2008, with most consumers preferring to repay debt and add to saving.
- “All households now anticipate smaller income gains and larger price increases, as just one-in-five now expect their overall finances to improve during the year ahead, the least favorable reading in more than a quarter century.”
- “More consumers reported hearing news reports of unfavorable economic developments in April than any other time in the fifty years history of the survey, with job losses, rising prices, and the fallout from the housing and credit crisis dominating the reports.
The American consumer feels we are in a recession. Consumer spending is the largest component of GDP.
Sphere: Related Content
No comments:
Post a Comment