US consumer confidence at a 14 year low.

Consumer Confidence in the US is likely to be at its lowest level for more than 14 years as the Conference Board’s confidence index is likely to fall to 61, the lowest since October 1993.

It is also a significant drop from 64.5 in March, whilst another report highlighted that property prices also continued to fall, with negative equity and job losses at the heart of American concerns.

The figures are forecasted to decrease by 2.5 points, from 64.5 down to 62.0.

The main reason for the lower confidence is the current labour market and fears of job cuts.

The survey is also likely to reveal that the continued rising of petrol, up by $19 a barrel over the last month has hurt consumers pockets.

Consumer spending is very important in the US economy as it accounts for more than two-thirds of the economy, and as a result it will have a very strong affect of getting the country of the current slump.

The economy has grown by 0.7 percent which is the smallest gain since 1991. This is likely to have an impact on the gross domestic product Commerce Department’s report, which will be highlighted tomorrow.

This low reading indicates that the US consumers are pessimistic regarding the economy.

The pessimism is heightened by the fear of recession, and this itself is a double-edged sword because these current low levels of consumer confidence also mirror those of past recessions.

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