Report Shows Americans Are Gloomy About the Economy

consumer sentiment confidence economy
Gene J. Puskar/AP
NEW YORK -- U.S. consumer sentiment tumbled to a nine-month low in April, with Americans especially gloomy about the long-term health of the economy, a survey released on Friday showed.

The Thomson Reuters/University of Michigan's preliminary reading on the overall index of consumer sentiment fell to 72.3 in April, a level last seen in July, 2012, and below economists' forecasts of 78.5. The index stood at 78.6 last month.

The barometer of current economic conditions fell to 84.8 this month from 90.7, while the gauge of consumer expectations hit 64.2, down from 70.8.

Americans' long-term outlook was even more gloomy, with many anticipating a higher unemployment rate and lower after-tax income in the year ahead, Richard Curtin, the survey's director, said in a statement.

But more immediate plans for buying homes and vehicles were positive, Curtin said, while rising home and stock values were expected to support spending this year.

Economists have worried that higher payroll taxes and government belt-tightening could cause consumers to keep a closer watch on their wallets as the year goes on.

Consumer pessimism this month did suppress inflation expectations, with the one-year outlook dipping to 3 percent, the lowest in the past year, from 3.2 percent in March. The survey's five-to-10-year inflation outlook held at 2.8 percent.

The Federal Reserve has repeatedly pointed to tame inflation expectations and a still fragile labor market as reason to press ahead with its aggressive monetary stimulus.

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well look who you have in office obama and biden what a joke

April 15 2013 at 6:53 AM Report abuse rate up rate down Reply

Most of the employed are paying off their debts, not amassing more. How much crap do we really need? I don't know if this is true, but I heared on TV that in 1960 there were no storage facilitys in the US. Now there are millions of units full of crap that people don't use. It had to come to a breaking point. I think it was Will Rogers who said "Americans are the only people in the world who drive themselves to the poorhouse".

April 15 2013 at 1:06 AM Report abuse rate up rate down Reply

I`m about to get taxed $700.00 next year for not having Medical insurance...WTF, if I had an option don`t you think I would have med. insurance??? my employer offers insurance but it`s going to cost me $100. a paycheck, then I have a $500. ded. and then I have to pay 20% of the bill.

April 14 2013 at 11:45 PM Report abuse rate up rate down Reply
2 replies to dare248's comment

Somehow, your information SOUNDS wrong--I am not saying it is, but it sounds incorrect. I pay 410 a month for my family with a modest 1500 out of pocket limit. I pay 20$ an MD visit and 4,10 or 40$ per prescription.
Having had 15 surgeries and on one occasion a 4.5 month stay in intensive care, and with total bills exceeding 2.2 million (to date--not what has been paid-but what was "billed"), I am grateful to pay that 410 a month.
Perhaps you need to speak to your employer or the HR at your job and get more detailed info and understand your options. Best of luck to you.

April 15 2013 at 2:27 AM Report abuse rate up rate down Reply

my ******* heart bleeds for you

April 15 2013 at 2:56 AM Report abuse rate up rate down Reply

Healthcare insurance premium increases has been a major factor fot stagnant wages for years. Cheap labor has also hurt wages for many years. Way before Obama was in office.

April 14 2013 at 10:50 PM Report abuse +1 rate up rate down Reply

The gas companies have taken most of the extra spending money most of Americans have to spend. That and the republican congress, a do nothing good for America, just what they think is good for the GOP. Lord help us if they get control of the federal government. Social security and medicare will be gone. If you are drawing a check from social security thank a democrat.

April 14 2013 at 9:29 PM Report abuse +1 rate up rate down Reply

I pulled back on buying anything other than what was needed and started putting that money towards paying off house, when obumble got elected.

April 14 2013 at 9:25 PM Report abuse +2 rate up rate down Reply

Any one with an ounce of common sense realizes the economy is a mess and the government is the major problem. Only Obama and his non working, living off the system followers cannot see it.
Obama care and all the related hidden taxes will make the problem worse when they come into full effect.

April 14 2013 at 8:29 PM Report abuse +5 rate up rate down Reply
Charles Elfert

Wait till Obamacare hits. This will destroy our economy.

April 14 2013 at 8:26 PM Report abuse rate up rate down Reply

You voted for obama twice, so take your medicine, he doesn't know what he is doing, and the only thing he can say is blame Bush

April 14 2013 at 6:04 PM Report abuse +4 rate up rate down Reply

Just because the economy sucks $hit, and the criminal president, a corrosive congress, and the criminal corporations that back them, have colluded to rape the citizens of the US, is no reason to be gloomy. After all Bloomberg is now charging $2.00 to see the site of the 9/11 tragedy. What could possibly be more inspiring than good old fashioned parasitic entrepreneurship.

April 14 2013 at 4:27 PM Report abuse +4 rate up rate down Reply