US consumer confidence fell to its lowest in more than a quarter century in early April on concerns over inflation and jobs, a new survey showed today.
The Reuters/University of Michigan Surveys of Consumers said its preliminary index of confidence fell to 63.2 in April from 69.5 in March, below economists' median expectation of a slight fall to 69.0 and the lowest since March 1982's 62.0.
Near-term inflation expectations measured by the survey jumped to the highest since the turmoil following Iraq's invasion of Kuwait in late 1990, which caused oil prices to rise sharply.
The report's reading of one-year inflation expectations jumped to 4.8 per cent - the highest since a similar reading in October 1990 - from 4.3 per cent in March.
Five-year inflation expectations rose to 3.1 per cent - the highest since December 2007 - from 2.9 per cent in March.
The index of expectations for personal finances fell to 97, the lowest since April 1980 when it was 94, from 112 in March. The index of current personal finances fell to 87, its lowest since November 1982, when it was 85, from 93 in March.
"The April loss was due to rising inflation and shrinking income gains," the Reuters/University of Michigan Surveys of Consumers said in a statement.
"There have only been a dozen other surveys that have recorded a lower level of consumer sentiment in the more than 50-year history of the survey."