NEW YORK–Consumer confidence fell to its lowest level in 16 years this month, dropping more than five points since April. The previous low was in October 1992.
Fears of inflation, ever-rising gasoline prices and bleak job prospects “have further depleted consumers’ confidence in the overall state of the economy,” said Lynn Franco, director of consumer research for The Conference Board, which released the findings this morning.
Ominously, more than a third of consumers expect business conditions to worsen over the next half year, an increase from 27.4 percent in April. More also expect their personal incomes to decline.
In keeping with the lowered confidence, fewer consumers in May said they plan to purchase major appliances over the next six months, than during May a year ago. However, more plan to buy new television sets.
The confidence level is developed via a monthly survey of 5,000 households.