Consumer confidence plummets

— -- A slowing economy and rising prices have consumers deeply worried about the future.

Consumer confidence is at a 16-year low, the New York-based Conference Board reported Tuesday.

Its index of consumer expectations — the forward-looking part of the monthly survey — fell to its lowest level ever as consumers assess, among other things, what's ahead for prices they pay at the pump and in the grocery store.

The consumer confidence index for June fell to 50.4, its lowest since February 1992 and down from 58.1 in May. The number is based on a survey of 5,000 households completed last Wednesday.

"Consumers' assessment of present-day conditions continues to grow more negative, and suggests the economy remains stuck in low gear," says Lynn Franco, director of the Conference Board Consumer Research Center.

Inflation expectations held steady at 7.7, Franco says, but that's a historically high level. At the same time, the percentage of those expecting their incomes to increase fell to 12.3% from 14.1%.

"This is incredibly awful," Ian Shepherdson, chief U.S. economist for High Frequency Economics, said in a statement. "Even as some people spend their tax rebates … the majority appears to be overwhelmed by the surge in gasoline and food prices, and the drop in stock and home prices."

Consumers are particularly worried about what's in store for the economy. "We're now nine months into a slowdown, and the fear is that it could go on for another nine months." says Ken Goldstein, economist for the Conference Board.