US consumer sentiment takes a hit in April

US consumers felt less secure in the economy's strength in April as gasoline prices soared.

US consumers felt less secure in the economy's strength in April as gasoline prices soared.

The University of Michigan said its measure of confidence slid to 88.7 so far this month from 92.6 in March, according to market sources who saw the subscription-only report. Analysts had forecast a more modest dip to 91.5.

At the heart of the decline in confidence, said analysts, were worsening economic conditions due to record prices at the gasoline pump - a tough break for a nation as reliant on cars as the United States.

The survey's expectations component fell to 79.0 from 82.8; perceptions of current conditions tumbled to 103.9 from 108.

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Consumer spending is the backbone of the US economy, accounting for two-thirds of overall activity, so a drop in confidence could be a precursor to softer growth.