Consumer Confidence Dips to Six-month Low

Americans’ economic enthusiasm continued to erode, hitting a six-month low heading into the second quarter, according to the most recent results of the RBC CASH (Consumer Attitudes and Spending by Household) Index. The survey, which measured the attitudes of 1,000 Americans earlier this week, found that overall consumer sentiment decreased by nearly seven points in April, driven by declines in all facets of consumer attitudes. As a result, the RBC CASH Index, released today by RBC, stands at 85.4, compared to 92.3 in March.

"The decline in consumer confidence to its lowest level since October is consistent with the increasing price of gasoline, rising mortgage rates and continuing headlines about the housing correction," said T. J. Marta, Economic and Fixed Income Strategist for RBC Capital Markets. "Overall, the across-the-board downturn may indicate further erosion of economic confidence in coming months, especially if gas prices continue to increase."

The RBC CASH Index is a monthly national survey of consumer attitudes on the current and future state of local economies, personal finance situations, savings and confidence to make large investments. The Index is composed of four sub-indices: RBC Current Conditions Index; RBC Expectations Index; RBC Investment Index; and, RBC Jobs Index. The Index is benchmarked to a baseline of 100 assigned at its introduction in January 2002. This month’s findings are based on a representative nationwide sample of 1,000 U.S. adults polled from April 2-4, 2007, by survey-based research company Ipsos Public Affairs. The margin of error was plus or minus 3.1 per cent.

The entire RBC CASH Index report can be viewed at: www.rbc.com/newsroom/rbc-cash-index.html.