Consumers see little hope of quick recovery

Consumer confidence fell to its lowest level since 1980 and its fifth-lowest reading ever as higher costs for food and energy, in addition to a sagging housing market, put a crimp in consumer expectations. The Reuters/University of Michigan Surveys of Consumers’ preliminary index of confidence fell to 59.5 in May, the lowest since June 1980, when it stood at 58.7. The index was at 62.6 in April. The index’s historic low of 51.7 was reached in May 1980. The expectations index fell to a reading of 51.7, down from 53.3 in April. The current-conditions index fell to a reading of 71.7, down from 77 in April. “Consumer confidence continued to slip in early May due to surging food and fuel prices,” the Surveys of Consumers statement said. “Record numbers of consumers viewed the economy in recession and saw little hope of recovery anytime soon.”