U.S. Consumer Confidence Declines to 15 1/2-Year Low

Source Bloomberg.com:

Confidence among U.S. consumers fell to the lowest level in more than 15 years, raising the risk that spending will slump and prolong an economic slowdown.

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The deepening housing slump, gasoline near $4 a gallon and mounting job losses may prompt Americans to reduce spending even more. Companies are responding to slower sales by cutting back on investments and production, putting the world's largest economy at the brink of a recession.

``People are being overwhelmed by higher food and gasoline prices, in a addition to a lot of uneasiness about the labor market,'' said Kevin Logan, senior market economist at Dresdner Kleinwort in New York. ``We're observing concern over higher costs and uneasiness about jobs.''

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