Consumers' mood hits at 28-year low

[Pale Blue Dot]

Source: MSNBC

NEW YORK - Consumer confidence fell to a 28-year low in May as inflation expectations soared, according to a survey released on Friday that presents a dilemma for the Federal Reserve.

The Reuters/University of Michigan Surveys of Consumers said the final reading in May for its index of confidence fell to 59.8 from April's 62.6, slightly above the median expectation of 59.5 in a Reuters survey of economists.

May's reading was the lowest since 58.7 in June 1980 but it was slightly higher than the preliminary reading of 59.5 published earlier this month.

However, the improvement was marginal and the report still paints a troubling picture, with one-year inflation expectations surging to 5.2 percent -- the highest since February 1982 -- from 4.8 percent in April.

Worse yet, five-year inflation expectations jumped to 3.4 percent, the highest since April 1995. In April this year they were at 3.2 percent.



Read more: http://www.msnbc.msn.com/id/24891313 /

[ckramer]

1. The stock market says

you guys can go to hell, i'm going up up up!

[Steerpike]

2. It seems like a death spiral.

With food and fuel prices out of control what will happen to consumers? When will we reach the breaking point? I fear we will find out sooner than later.

[KansDem]

3. Time to issue another stimulus check. Make mine out for $10,000, please.

My share of the bogus Bush/Iraq war...

($3,000,000,000,000 / 300,000,000 Americans = $10,000)

[Javaman]

4. It seems as if everytime we hit a new low, the last "low" was during a repuke

admin. funny how that works.

[FiveGoodMen]

6. My thought too, but 28 years ago Carter was still President.

The best President during any of my 48 years, but the country's mood wasn't good at the time.

[Quantess]

5. 28 years ago, we didn't have good antidepressants

SSRIs should be factored in.