US CONSUMER confidence fell for a third straight month in April, hitting its weakest in 26 years on heightened worries over inflation and the sagging housing market, a survey showed yesterday.
The Reuters/University of Michigan Surveys of Consumers said its index of confidence for April fell deeper into recessionary territory, to 62.6 from 69.5 in March, and below economists' median expectation of 63.2 in a Reuters poll.
The April result is the lowest since March 1982's 62.0, when the "stagflationary" period of low growth and high inflation was still an issue for many Americans.
"More consumers reported that their personal financial situation had worsened than any time since 1982 due to high fuel and food prices as well as shrinking income gains and widespread reports of declines in home values," the survey said.
Nearly nine in 10 consumers thought the economy was now in recession, it added. While a tax rebate would bolster consumer spending, consumers favoured using the rebate to repay debt and to add to their savings. -(Reuters)
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