FXstreet.com (Barcelona) - Consumer confidence has plummeted in April to its lowest level of the last 25 years in the United States, weighed by high fuel and food prices and shrinking income together with the declining home values, as the latest consumer sentiment report by Reuters and the University of Michigan shows.
The index of consumer confidence has dropped to 62.6 in April from 69.5 in March, down from 69.5 in March, and well below the 87.1 level posted in April 2007. The index of consumer expectations decreased to 53.3 in April from 60.1 in March.
From January 2007, the expectations index decreased 39%, a sharper decline than the 20% of the 1990 recession, and also larger than the 30% decline posted before the 2001 recession.
According to Richard Curtin, the Director of the Reuters/University of Michigan Surveys of Consumers, consumers have turned more cautious due to rising inflation, higher joblessness and smaller income gains.