NEW YORK (CNNMoney.com) — Consumer confidence sank to its lowest level in 26 years, according to a survey published Friday.
The University of Michigan Consumer Confidence survey revealed that high food and fuel prices, coupled with shrinking incomes and falling home values, have driven consumers to save their money rather than spend it.
The survey’s Index of Consumer Sentiment, a closely watched indicator of the economy’s current health, fell to 62.6 in April, a drop of 6.9 points from the previous month and the lowest level since 1982.
The Index of Consumer Expectations, which economists use to help determine the economy’s future direction, fell to 53.3 in April, a decline of 6.8 points from the previous month.
According to the survey, only 30% of consumers plan to spend their upcoming tax rebate, while the rest said they would use it to pay off debt or put it into savings. More…
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