The Conference Board's Consumer Confidence Index dropped in May to 57.2 (1985 = 100), 47.3% below the mark for May of 2007.
Said Lynn Franco, Director of The Board's Consumer Research Center: "The Consumer Confidence Index now stands at a 16-year low. 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. Consumers' inflation expectations, fueled by increasing prices at the pump, are now at an all-time high and are likely to rise further in the months ahead."
Franco says she sees little likelihood of a turnaround in the immediate months ahead. More than a third of consumers responding said they thought business conditions would get worse over the next six months.