POLL: Confidence Drops Sharply;
Optimism Matches its Worst

April 15, 2008 — -- Harried by rising gas prices, consumer confidence slid to a 14-year low today while economic expectations continued to flounder at their worst in 17 years.

The ABC News Consumer Comfort Index sustained an unusual 5-point drop this week to -39 on its scale of +100 to -100, its lowest since October 1993. Views of the national economy are their worst in 14 years; ratings of personal finances dropped significantly.

In a separate monthly measure, only 3 percent say the economy is improving, same as last month at the record low set during the 1990-91 recession. Though optimism can't get much worse, pessimism has: Seventy-three percent say the economy is getting worse, up from 68 percent last month and very close to the record, 77 percent in late 1990.

It's hardly unexpected. On top of the housing and credit crises, retail gas prices climbed 6 cents to $3.39 last week, up 51 cents in the last year to their highest levels in more than 27 years. In a separate ABC News/Washington Post poll this week, a near-record 67 percent of Americans say the price of gasoline is causing financial hardship for them or their families. Nearly four in 10 (38 percent) report serious hardship.

INDEX – The ABC News CCI is based on Americans' ratings of their current finances, the national economy and the buying climate. Only 15 percent rate the national economy positively, the fewest since October 1993. Positive ratings of the national economy are 7 points below their 2008 average, 22 percent, and 25 points below the long-term average, 40 percent in weekly polls since late 1985.

Twenty-four percent rate the buying climate positively, down 7 points this year and 14 points off the long-term average, 38 percent.

Traditionally the strongest of the three measures, positive ratings of personal finances dropped 4 points this week to 53 percent, tying the 2008 average and 4 points below the long-term average, 57 percent.

EXPECTATIONS – As noted, 73 percent think the economy's getting worse, 5 points more than last month and the most since November 1990. Negative expectations have been above 60 percent for six months straight, a record in ABC News polls since 1981.