U.S. Consumer Confidence at 28-Year Low

A survey released Friday showed that U.S. consumer confidence has fallen to the lowest point since the “stagflation” of the early 1980s. According to the survey, lower-income households, citing rising food and fuel prices, were the main source of the drop in confidence.

Reuters:

Consumer confidence tumbled to its lowest in 28 years this month, a survey showed on Friday, as short-term inflation expectations reached the highest levels since the stagflationary early 1980s.

The news heightens the dilemma for the Federal Reserve, which has bet that slowing economic growth will tame inflation pressures. The report also showed that lower-income households were the focus of the downturn in sentiment.

The Reuters/University of Michigan Surveys of Consumers’ preliminary index of confidence fell to 59.5 in May, the lowest since June 1980. In April it was at 62.6.

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