Big declines in the Consumer Attitudes and Spending by Household Index were associated with consumers’ pessimistic outlooks about the future of the economy and their personal finances. The Expectations Index, which measures consumers’ economic outlook for the next six months, stood at 58.6, versus 79.6 in January and 89.2 one year ago. More than half of Americans (57 percent) believed the economy in their area would remain approximately the same in six months.

The Investment Index, which measures consumers’ ability to save and invest for the future, stood at 80, down from 92.3 in January and 90.3 a year ago. Consumers’ anxiety came through in terms of what they expected to save and what they expected to spend. Continuing January’s trend, marginally more consumers felt less confident (47 percent) rather than more confident (43 percent) in their ability to invest in the future. Consumers also were less comfortable spending on major items and on household purchases.

Ipsos Public Affairs (Washington) polls consumers twice a month about the current and future state of the local economy, personal financial situations, spending, saving, and confidence to invest. [May 2005 PET AGE]