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Consumer Confidence Index Slides to Five-Year Low

The Conference Board Consumer Confidence Index, which declined sharply in March, fell further in April and stands at 62.3 (1985=100).

This is down from 65.9 (revised upward) in March, according to the Conference Board, writes MarketingCharts.

That's the lowest it's been since March 2003, MarketWatch reported.

The Present Situation Index decreased to 80.7 in April from 90.6 in March; that's the lowest since December 2003. The Expectations Index was slightly up, to 50.1 from. 49.4 in March; it's been lower just five times since the survey began, in 1967.

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"This month's decline in Consumer Confidence was the result of yet another sharp decline in the Present Situation Index. This continued weakening suggests that not only has the feeble level of growth in the first quarter spilled over into the second quarter, but that economic conditions may have slowed even further," said Lynn Franco, director of The Conference Board Consumer Research Center.

"And, not only are lackluster business and job conditions eroding confidence, but rising gasoline prices are undoubtedly heightening concerns. Consumers' inflation expectations continue to rise and this measure now matches the all-time high reached in the aftermath of Hurricane Katrina," Franco said.

The percentage of respondents intending to take a vacation over the next six months has fallen to a 30-year low, she added, saying that's yet another sign of consumers' turning more cost-conscious.

MarketingCharts has more data, including assessment of current conditions and the labor market, as well as short-term outlook.

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