More bad news for US economy

Consumer confidence and house prices slump in latest signs of looming US recession.

    Rising oil prices have been blamed among others for low consumer confidence [EPA] 

    Financial experts have blamed tight credit conditions, falling housing wealth, rising gasoline prices and the nation's increasing unemployment rate for the confidence slump.

    Bleak outlook

    Meanwhile housing prices in all 20 US cities tracked by the Standard & Poor's/Case-Shiller home price index showed annual declines at levels not seen since August 2004.

    The index's smaller 10-city index fell 16.3 per cent in April, the largest decline in its two-decade history.

    "Looking ahead, consumers' economic outlook is so bleak that the expectations index has reached a new all-time low," Lynn Franco, consumer research director at the Conference Board, told AFP.

    "Perhaps the silver lining to this otherwise dismal report is that consumer
    confidence may be nearing a bottom."

    The reports coincided with the opening of a two-day meeting held by the US central bank, the Federal Reserve, to discuss interest rates, which are expected to be left unchanged in a decision to be released on Wednesday.

    The US Federal Reserve has cut interest rates by 3.25 percentage points since last September in a bid to stave off the nation's growing housing and credit crises.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Interactive: Coding like a girl

    Interactive: Coding like a girl

    What obstacles do young women in technology have to overcome to achieve their dreams? Play this retro game to find out.

    Heron Gate mass eviction: 'We never expected this in Canada'

    Hundreds face mass eviction in Canada's capital

    About 150 homes in one of Ottawa's most diverse and affordable communities are expected to be torn down in coming months

    I remember the day … I designed the Nigerian flag

    I remember the day … I designed the Nigerian flag

    In 1959, a year before Nigeria's independence, a 23-year-old student helped colour the country's identity.