Business News and Information

Consumer confidence in the economy reached its lowest level in five years. CNNMoney.com featured a story from the AP about this sharp downturn in consumer confidence. The Conference Board, a research group funded by businesses, said their Consumer Confidence Index dropped to 64.5 for March, down 11.9 points from February.

This may seem like a “duh” bit of information, but there are important implications to consider. Consumers are feeling quite pessimistic about job prospects and their income. In their official release, Lynn Franco, Director of The Conference Board said this “suggests further weakening [of the economy] may be on the horizon.”

CNN noted the index “has been weakening since July, and is watched because lower consumer confidence tends to result in lower consumer buying, which in turn, drags on the economy.”

Last Tuesday I reported 91% of American adults said they were somewhat or very concerned about the inflation rate.

The Expectations Index, a companion to the Consumer Confidence Index, is resting at its lowest point since the Oil Embargo and Watergate.