Consumer Confidence Hits 5-Year Low

Gas Prices, Weak Job Prospects Dim Shoppers' View Of U.S. Economy

(AP)  Soaring gas prices and weaker job prospects made Americans gloomier about the economy in April, sending a widely watched measure of consumer sentiment to a five-year low, a private research group said Tuesday.

The New York-based Conference Board said that its Consumer Confidence Index, which had plummeted in March, fell again to 62.3 in April, down from the revised 65.9 last month and 76.4 in February. While the reading was a little better than the 61.0 expected by analysts, the index remains at its weakest point since March 2003, when it registered 61.4, ahead of the U.S. invasion of Iraq.

"This continued weakening suggests that not only has the feeble level of growth in the first quarter spilled over into the second quarter, but the economic conditions may have slowed even further," Lynn Franco, director of the Conference Board Consumer Research Center, said in a statement. "And not only are lackluster business and job conditions eroding confidence, but rising gasoline prices are undoubtedly heightening concerns."

The Present Situation Index, which measures shoppers' current assessment of economic conditions, dropped to 80.7 in April from 90.6 in March. The Expectations Index, which measures the outlook over the next six months, was little changed at a depressed 50.1, compared to 49.4 in March.

Eroding consumer confidence foreshadows weakening consumer spending, which could further hurt the already deteriorating economy since consumer spending accounts for more than two-thirds of the nation's economic activity.

Investors were unfazed, however, by the fourth straight month of declines in the consumer sentiment reading. In midmorning trading, the Dow Jones industrial average fell 0.32, or less then 0.01 percent, to 12,871.43. Broader markets were narrowly lower.

The downbeat news on confidence came as the widely watched Standard & Poor's/Case-Shiller index showed that housing prices dropped in February at the fastest rate ever, showing that the housing slump is gaining momentum.

Franco noted that consumers' worries about inflation are still rising and that measure now matches the all-time high reached in the aftermath of Hurricane Katrina in the fall of 2005 when gas and oil prices soared after the hurricane and other storms devastated New Orleans and shut down a large chunk of the nation's oil refineries.

She added that the percentage of respondents surveyed who intended to take a vacation over the next six months has fallen to a 30-year-low, another indications that consumers are turning more frugal.

The dismal reading is another big blow to retailers, which have struggled with a spending malaise that has worsened in recent months. Shoppers are being confronted with a number of economic problems as soaring gas and food bills are outpacing meager wage gains. Consumers are also faced with an escalating credit crisis and slumping housing values.

A big worry is the employment market, which has been shedding jobs in recent months. The Labor Department is expected to show another loss of 75,000 when it releases its April report Friday; that follows a 80,000 job loss in March. Analysts also estimate that the unemployment rate will tick up to 5.2 percent from 5.1 percent in March.

Meanwhile, money from the government's economic stimulus plan have begun dropping into bank accounts - but with rising gas and groceries bills, early indications suggest that shoppers will focus on catching up on basics like meat or eggs, instead of buying a new TV or clothes. That means that grocery stores and discounters could be the few beneficiaries in the retail world of the stimulus plan.

The Consumer Confidence report - derived from responses through April 22 - is based on a representative sample of 5,000 U.S. households.

[getcentered]

Maybe we are a little bitter?

Bitter about losing our homes.....
Bitter about soaring prices.....
Bitter about watching the CEO''s ship American jobs overseas.....

Consumer Confidence Hits 5-Year Low but Americans aren''t bitter....

[antoniof123]

Wow, and the village idiot still thinks that he has a legacy.

Just like his dad will go down beleive in the tooth fairy.

[irliberal]

Naw, they still have their religion and guns.

[jjp735i]

Anyone tell Bush "soaring gas prices and weaker job prospects made Americans gloomier about the economy"?
You know he has no clue on his own.

[hungry1968]

And confidence in America''s government hits an ALL-TIME low.

The American people are practically begging a neighboring country to invade us and install a democracy here.

[mcvet]

What is wrong with all of you?? Just vote for "Stay the Course" McSame and get over it! This trashing of the "Party" and the Fuhrer has got to stop! How can they continue to export jobs and make MILLIONS doing it if you people won''t follow the "Party"? ROFLMAO Sieg Heil Bush

[mcvet]

No, that is what you are begging for


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Posted by jamesm12341 at 01:07 PM : Apr 29, 2008

Well tell us what are you in the "Party" begging for? I mean you were HANDED a Government with a Balanced Budget and a SURPLUS... Don''t know how it could have been any better. So what happened?? Sieg Heil Bush

[mcvet]

If you are smarter than him how come you aren''''t president?


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Posted by jamesm12341 at 01:08 PM : Apr 29, 2008
+ report abuse

That''s rigth! You tell him! Just think of how much intelligence it takes to take a government from a Balanced Budget to RECORD Deficits in 6 years!! But then to borrow so much that you have DOUBLED the National debt? So it''s growing at the rate of ONE MILLION dollars a day... hey that''s just MORE "T" Bills for you to buy huh?? You tell em''! ROFLMAO Sieg Heil Bush. You really aren''t the sharpest tool in the old shed there sparky!! ROFLMAO

[mexinvasion]

5 year low. Duh!! Fewer vacations. Duh!! I was surprised to see the $600 Bush rebate show up in my checking account today. I''ll just be writing a check to my Visa card bill for $600, the Visa card that I use only for.....prescription drugs.

[rudy654-2009]

That''''s rigth! You tell him! Just think of how much intelligence it takes to take a government from a Balanced Budget to RECORD Deficits in 6 years!! But then to borrow so much that you have DOUBLED the National debt? So it''''s growing at the rate of ONE MILLION dollars a day... hey that''''s just MORE "T" Bills for you to buy huh?? You tell em''''! ROFLMAO Sieg Heil Bush. You really aren''''t the sharpest tool in the old shed there sparky!! ROFLMAO


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Posted by MCVet at 01:12 PM

Love it!

[rudy654-2009]

they are your prescriptions....do you expect someone else to pay for them for you? yes? no?


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Posted by jamesm12341 at 01:41 PM

And the drug companies shouldn''t expect anymore subsidies from us either, get it?

[iamwary]

I for one have been leary of buying ''unnecessary'' items lately. My goal is to pay off my one credit card,(about $900 to go)and my one department store charge (about $300 now). This is totally due to the state of the economy. Once I an completely debt-free, I will feel much better!

[trillion1]

We have an idiot puppet in the WH and a congress that sold out to big business years ago. I''m surprised there is any confidence.

[forthepeopl1]

please this is a simple thing to fix, why are you bending over for all of the wallstreet scum.
you have the right to do what this paulson/ben did for wallstreet,saying they had to to save america. so you can say the same thing, but this time you would be saveing america, and not wallstreet.
you must come out and stop the forcloseing of all these millions of homes, now,
ALL YOU HAVE TO DO IS MANDATE THAT ALL MORTGAGES THAT HAVE BEEN TAKEN OUT FROM 2000 TO 2007 BY ALL AMERICANS TO BE RE-FI A.S.A.P. NO EXCEPTIONS,


NO MATTER WHAT THE CREDIT IS, THEY WILL RE-FI EVERYONE AT JUST OVER PRIME, AND AT A RATE OF 40% OF WHAT IS OWED ON THE PROPERTY( PERSONAL HOMES ONLY)!!
WHY, BECAUSE MOST HOST ARE SELLING AT FORCLOSER FOR 20 TO 30 CENTS ON THE DOLLAR, SO AS TO WHAT PAULSON SAID TO BEARSTEARN 2 DOLLARS IS BETTER THAN NO DOLLARS SO TAKE THE DEAL..NOW REMEMBER ALL OF YOU, IF THIS COMPANY IN 6 MONTHS LOST 98% OF THEIR VALUE FROM 700 BILLION TO WHAT IS IT NOW. AND FOR SOMEONE TO COME IN AND BUY IT FOR NOTHING, WHAT IS THE REAL VALUE OF ALL THESE HOMES???NOBODY KNOWS, SO WHY NOT JUST START OVER??? AND STOP THE BLEEDING FOR ALL AMERICANS.

[e-mail]
DAVID A BELANGER
FOR COMMON SENSE THIS IS SO EASY TO FIX DONT MAKE IT HARDER THAN IT IS PEOPLE.

AND LOOK AT THIS MORNINGS NEWS, THE GREAT POTATOHEAD PAULSON,AND BEN ARE IN TALKS WITH ANOTHER WALLSTREET FIRM GOING DOWN. MERRILL LYNCH
WHAT MORE BAILOUTS FOR WALLSTREET COMING.

[sistatee-2009]

The next stimulus checks should arrive just before the 2012 election.

[mcvet]

The next stimulus checks should arrive just before the 2012 election.


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Posted by SistaTee at 05:29 PM : Apr 29, 2008
+ report abuse

Strange you should say that... we didn''t need them in the PREVIOUS Administration, what makes you think we will in the next.... well assuming you don''t elect someone who what''s to "Stay the Course" that is!!

[bobnjersey]

[If you are smarter than him how come you aren''''t president?]
[Posted by jamesm12341 at 01:08 PM : Apr 29, 2008]

maybe he wasn''t born into a family of money and connections ... maybe his father wasn''t the director of the cia, a vice president, and a president himself.

if there''s anything the shrub has taught us ... it''s that you don''t have to be smart to be ''the decider'' ... you just have to be well connected ... and repeat the same engineered phrases prepared for you that are intended to influence and persuade.

and of course you are an example of how after being a total screw up ... you''ll can still have your blind followers who will be right behind you as you go over the cliff.

[mcvet]

I am not begging for anything....


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Posted by jamesm12341 at 03:41 PM : Apr 29, 2008
+ report abuse

You still didn''t answer the question Swastika Breath!! WHAT HAPPENED? You Fascist and your fuhrer, Heir Bush, WERE HANDED a BALANCED BUDGET... the record is clear on that one. HE WAS HANDED a SURPLUS, also record clear on that one. SIEG HEIL BUSH!!

[mcvet]

so you are one of the "americans" that is begging for another country to invade us?


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Posted by jamesm12341 at 03:45 PM : Apr 29, 2008
+ report abuse

Duh?? That isn''t the question Bootlicker and YOU know it... The Question is still WHAT HAPPENED!! Sieg Heil Bush

[truthyness]

IT''S NOT RACISM STUPID,

IT''S ELITISM!

[liberalme]

drug companies same as all companies are in business to make a profit..... get it? yes? no?

Posted by jamesm12341 at 03:43 PM : Apr 29, 2008


Yes? no? Again jwind11 you are so proud of your lack of knowledge that you insist on telling the world just how ignorant you are!
If you at least asked intelligent questions, making an attempt to gain knowledge it would be a good thing, but you are so stuck on stupid, and dammmed proud to prove it!

Go back to poker, that''s a stupid game you''re good at (so you say)

[liberalme]

drug companies same as all companies are in business to make a profit..... get it? yes? no?

Posted by jamesm12341 at 03:43 PM : Apr 29, 2008


Yes? no? Again jwind11 you are so proud of your lack of knowledge that you insist on telling the world just how ignorant you are!
If you at least asked intelligent questions, making an attempt to gain knowledge it would be a good thing, but you are so stuck on stupid, and dammmed proud to prove it!

Go back to poker, that''s a stupid game you''re good at (so you say)

[liberalme]

ladies and gentleman may I present LIBERALME....what i am about to tell you is true, you are going to insist i am lying but i am not.....first, liberalme posted that she needs the president to make her all better...and, number 2, this one is strange but also true....here goes...liberalme posted that she wonders what cindy mccain looks like without makeup on.....i am not lying!! with all the problems in the world, what the hell does it matter what a person looks like without makeup on?

Posted by jamesm12341 at 06:30

Awwww thank you jwind11 for proving me right--is it OCD? too bad.

[arlt1627]

this is about he 2nd time i''ve seen jwind copying and pasting pieces about liberalme and mcvet on here today.....seems like a personal vendetta...and no real points on topics today! Just catch phrases!

Here''s my 2-cents. The economy stinks right now! stimilus package is a joke and the FED is going to print more money starting tomorrow (I think) which will devalue our dollar a little more and oil prices will go over $120. Yikes!!

[noloyalisti]

The economy is doing just great if you are in with bush''s fascist crew of big corporations. I actually think this is EXACTLY what they had in mind for us. The American people will be so worried about making a buck they will forget about the fascist coup that started in 20oo with the first stolen election and will continue for McBush in 2008.

[sistatee-2009]

The stimulus checks are coming from an entity that is nine TRILLION dollars in debt. Always nice to get a check from someone who''s bankrupt.

[rudy654-2009]

drug companies same as all companies are in business to make a profit..... get it? yes? no?


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Posted by jamesm12341 at 03:43 PM

Look Caca for brains, they can make all the money they want, WITHOUT any subsidies, WITHOUT my tax dollars helping them. Now, do YOU GET IT? Or do you think they have a right to those subsidies while they mess with us?

[tryhonesty]

Just another day with RepubliCONs in power...building a better Soviet America for All. Its time for a big FLUSH this Fall. Bye, bye RepubliCONs, and take your McSame "sandwich" with you.

[randynason]

I always wondered what it might be like, to visit a third-world country. Now, I live in one.

[veteran72]

I always wondered what it might be like, to visit a third-world country. Now, I live in one.


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Posted by RandyNason at 07:59 PM : Apr 29, 2008
+ report abuse

Thanks, Bushies!!!

[hedonist3]

I always wondered what it might be like, to visit a third-world country. Now, I live in one.
--------------------------
Posted by RandyNason

You spoiled pig. Your petty statement does a tremendous disservice to those truly suffering. How long has it been since you had a hungry belly you couldn''t fill? You and your ilk disgust me.

As for the article, oh yeahhhh; I''m really going to put a lot of stock in what John Q. Consumer thinks -- the same ones who couldn''t even figure out how much house they could afford.

Whiney freakin'' crybabies...

[scorpio59er]

The party is over and the fat lady is singing.

[cattlekate]

drug companies same as all companies are in business to make a profit..... get it? yes? no? Posted by jamesm12341 at 03:43 PM : Apr 29, 2008

It is best not to respond to this troll.

His smart-ask quips hold no value and are designed to lie, incite, and give a simplistic, false, and an idiotic ingredient to the Bush&Co talking points.

Ignore him.

[providence-o]

Consumer Confidence can be change through the economy rising back up! Also it would not hurt to go to shipwrecksoul.blogspot.com and check out this confidence!

[gce65]

A 5 year low? That''s all? I''ll bet it''s a lot lower than that. Just wait a couple more months.

[ontheleft]

In a couple more months it will hit a 10 year low. How low can we go?

[rudy654-2009]

Posted by cattlekate at 10:15 PM

Troll? You are projecting your ugliness onto others.

[rudy654-2009]

Posted by Hedonist3 at 08:41 PM

Yeah, crybabies! And you can''t stand that people have the freedom to speak up, can you? Pathetic, you and your ilk!