Consumer confidence continues to tank.
Consumer confidence declined in April for the third consecutive month, signaling Americans’ concerns that economic growth is leveling off.
The Conference Board said Tuesday that its Consumer Confidence Index fell 5.3 points to 97.7 for April, down from a revised reading of 103.0 in March. The new reading was slightly lower than the 98.0 forecast by analysts.
The new figure takes the index to its lowest point since last November, when it registered 92.6.
“Less robust current conditions and a more cautious outlook have consumers feeling less confident in April than in March,” said Lynn Franco, director of the New York-based Conference Board’s Consumer Research Center.
“Looking ahead consumers do not anticipate an improvement in economic growth nor in their incomes. And they expect an even tighter job market over the summer months,” Franco said.
[A] sub-index measuring consumers’ expectations for the coming months fell to its lowest level since July 2003, pointing to growing doubts about where the economy is headed, the Board said.
Economists keep a close watch on consumer confidence because consumer spending accounts for two-thirds of all U.S. economic activity.
In the same report AP tells us that housing sales are up. Great! I wonder what percentage of those sales involve ARMs and how many of these new homeowners will be out on the street when inflation and high oil prices force mortgage rates through the roof?