UPDATE 1-US consumer confidence weakens again in April-IBD
Tue Apr 11, 2006 10:06 AM ET
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NEW YORK, April 11 (Reuters) - Consumer confidence in the U.S. economy weakened in April for the second month in a row, as consumers struggled with higher energy costs, rising interest rates and climbing credit burdens, according to a survey released on Tuesday.
Investor's Business Daily and TechnoMetrica Market Intelligence said their economic optimism index slipped to 48.6 in April, down from 49.1 in March and below the 50.5 reading in February.
A reading below 50 indicates pessimism.
"There's an overall pessimism about the economy," said Terry Jones, associate editor of Investor's Business Daily, in a statement. "This split suggests one of two things: either Washington's doing a poor job of communicating the economy's underlying strength, or the media are doing a poor job of reporting on it."
Consumer sentiment is considered to be a predictor of consumer spending, which accounts for more than two-thirds of U.S. economic activity.
Consumers' economic outlook in the next six months fell 1.4 points, or 3.3 percent, to 40.6, down from 42.0 in February.
However, optimism about personal finances, edged up 0.6 points, or 1 percent, to 59.8. Among the demographic groups that IBD/TIPP tracks, only older Americans -- age 65 or above -- were pessimistic about personal finances. All of the other groups were optimistic.
The IBD/TIPP gauge on confidence in federal government's economic policies slipped by 0.4 points, or 0.9 percent, to 45.5 in April.
The poll, which surveyed 927 adults, was conducted from April 1 to April 7.
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