Not Since Jimmy Carter

U.S. consumer confidence fell sharply in early August, falling to the lowest index level since 1980, as fears of a stalled recovery combined with despair over government policies.

High unemployment, stagnant wages and the protracted debate over raising the U.S. government debt ceiling spooked consumers who were polled before the Standard and Poor's downgraded the U.S. government's credit rating on August 5.

The Thomson Reuters/University of Michigan's preliminary August reading on the overall index on consumer sentiment fell to 54.9, the lowest since May 1980.

75 percent of consumers surveyed believe bad economic times are ahead. This is just below the all-time peak of 82 percent in 1980.

Survey director Richard Curtin released a statement saying "Never before in the history of the surveys have so many consumers spontaneously mentioned negative aspects of the government's role."

"This was more than the simple recognition that traditional monetary and fiscal policy measures were largely spent. It was the realization that the government was unable or unwilling to act," Curtin added.

Compounding the uncertainty, financial markets have been see-sawing this week as investors alternate between seeking opportunity in battered shares prices and fretting that the market could be on the verge of a further dive.

via U.S. consumer sentiment slumps, retail sales jump | Reuters.