Consumer confidence drops to 16-year low

Consumer confidence continued to tumble in May as a weakening job market, record gasoline prices and growing pessimism about the short-term future brought the index to a 16-year low. The Conference Board Consumer Confidence Index fell to a reading of 57.2, down from 62.8 in April, marking the lowest figure since October 1992, according to the New York-based research company. The Present Situation Index, which measures how consumers feel about current economic conditions, fell to a reading of 74.4 in April, from 81.9 in March. The Expectations Index, which measures consumers’ outlook for the next six months, declined to 45.7, from 50.0 in April. “Weakening business and job conditions coupled with growing pessimism about the short-term future have further depleted consumers' confidence in the overall state of the economy,” Lynn Franco, director of The Conference Board Consumer Research Center, said in a statement. TNS Financial Services of London administers the monthly Consumer Confidence Survey, which is based on a representative sample of 5,000 U.S. households.