Us reels from 'the big squeeze'

New research has revealed that US consumer confidence is at its lowest level for 16 years…

 The Consumer Confidence Index of the Conference Board Consumer Research Center (CBCRC) fell to almost six points to 57.2 in May, down from April's figure of 62.8. The figures tell a similar story to the University of Michigan Index, which hit a 28-year low in May.

David Coard from the Williams Capital Group in New York observed: "There is a fear the economy is in a recession or going into one and people may find their jobs in jeopardy. When you talk to people on the street they seem to be really being squeezed at the pump and the supermarket while their income isn't keeping up."

Lynn Franco, director of the CBCRC was pessimistic about the coming months: "Consumers' inflation expectations, fuelled by increasing prices at the pump, are now at an all-time high and are likely to rise further in the months ahead.

“As for the short-term outlook, the Expectations Index suggests little likelihood of a turnaround in the immediate months ahead."