Consumer Confidence Hits 16-Year Low

By Staff On Jun 2 2008 - 6:00am

The Conference Board Consumer Confidence Index, which had declined in April, continued its downward trend in May to a 16-year low.

The Index now stands at 57.2 (1985=100), down from 62.8 in April. The Present Situation Index decreased to 74.4 from 81.9. The Expectations Index declined to 45.7 from 50.0 in April.

Consumers' appraisal of current conditions grew more pessimistic in May. Those claiming business conditions are "bad" rose to 30.6 percent from 26.5 percent, while those claiming business conditions are "good" decreased to 13.1 percent from 15.4 percent last month. Consumers anticipating business conditions to worsen over the next six months increased to 33.6 percent from 27.4 percent.