US consumer confidence at a 16 year low

Americans have become more concerned over their jobs and are pessimistic over business conditions. This has been reflected in the S&P/Case-Shiller home-price index which fell by 14.4 percent compared to last year. The index has now declined for five months in a row.

The Consumer Confidence Index is a weighted average of how consumers feel about the economy now and where it is going in the future.

Similarly, figures from the Commerce Department showed that sales of new homes were at a near fifteen year low.

On the consumer side, confidence is very low and so short-term house purchases are going to continue to be affected.

The Reuters/University of Michigan index of consumer sentiment also fell in May and is at its lowest level for 28 years.

In April, employers cut 20,000 workers, so 260,000 job have been lost so far this year.

The Conference Board’s index dropped to 74.4 in May from 81.9 in April.

The survey also revealed that an estimated inflation rate is now at a record 7.7 percent.

The Conference Board’s survey showed that the number of prospective consumers planning to buy a home over the next six months dropped to 2.1 percent from 2.5 percent.

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