Consumer Sentiment Hits 28-Year Low

Ann Arbor, MI, June 27, 2008–Consumer sentiment grew more pessimistic in June, according to a survey released Friday by the University of Michigan and Reuters.

The consumer sentiment index fell to 56.4 in June from 59.6 in May and 56.6 in mid-June. It’s the lowest since 1980 and the third-lowest reading in the 56-year history of the survey.

More consumers said their own finances had worsened than ever before. Nine of 10 said the economy was in recession and two-thirds expect the slump to last several years. Consumers’ expectations for inflation over the next year climbed to the highest level in more than 20 years.