US consumer confidence erodes again

Hopes that the slowing US economy was set for a swift recovery were dashed today by a key barometer of consumer confidence survey…

Hopes that the slowing US economy was set for a swift recovery were dashed today by a key barometer of consumer confidence survey showed sentiment remained weak.

The Conference Board, a New York-based private research group, said its broad gauge of consumer attitudes slid sharply to 109.2 in April from a downwardly-revised March reading of 116.9.

This is its sixth tumble in seven months. Consensus forecasts were for a fall to 112.0.

The economic outlook for the next six months fell to 78.2 in April from a downwardly-revised 83.1 in March.

READ MORE

The survey suggests the interest rate cuts from the Fed so far this year had not yet reversed growing consumer pessimism.

"Deteriorating business conditions and a less favorable job market are the two critical reasons for the latest decline in confidence." Ms Lynn Franco, director of the Conference Board's Consumer Research Center said today.

"It's clear that consumers have begun to worry about employment trends and these concerns are gnawing away at consumer confidence," she addded.

The Conference Board's index is compiled from a representative sample of 5,000 households each month.