Consumer confidence tumbles to lowest level in 28 years

[marmar]

Reuters, via Yahoo!:



Consumers' mood grim in May: survey
Friday May 16, 9:57 am ET


NEW YORK (Reuters) - Consumer confidence tumbled to its lowest in 28 years this month, a survey showed on Friday, as short-term inflation expectations hit their highest 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 that are building up.

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

"Consumer confidence continued to slip in early May due to surging food and fuel prices," the Surveys of Consumers statement said.

"Record numbers of consumers viewed the economy in recession and saw little hope of recovery anytime soon."

This was well below economists' median expectation of a reading of 62.0, according to a Reuters poll.

One-year inflation expectations surged to 5.2 percent -- their highest since February 1982 -- from 4.8 percent in April.

Also worrying for policymakers at the Federal Reserve, five-year inflation expectations hit their highest since August 1996, edging up to 3.3 percent from April's 3.2 percent.

The inflation measures challenge the Fed's view that soaring commodity prices have not yet led to an increase in long-term inflation expectations. ......(more)

The complete piece is at: http://biz.yahoo.com/rb/080516/usa_economy_sentiment.html

[bdamomma]

1. that effin * and his policies. damn that man.