Ahead of the Bell: Consumer Confidence

Wall Street expects consumer confidence to head in the opposite direction of gas and grocery prices.

The Conference Board, a private business research group, releases its monthly survey of consumer confidence at 10 a.m. EDT. The consensus estimate of Wall Street economists surveyed by Thomson/IFR is 62, slipping from March's 64.5 reading. Economists' latest estimates ranged from 58 to 65.

The survey, based on a representative sample of 5,000 U.S. households, measures consumer sentiment on current economic conditions and the spending outlook for the next six months. In 1985, the consumer confidence index stood at 100, according to the board. Fluctuations of 5 points or more in the index are considered significant.

In March, the index, which is approaching a five-year low, fell nearly 12 points from the prior month.

The Conference Board's survey follows a similar one that was released on Friday by Reuters/University of Michigan, which said its index fell to its lowest reading since 1982.

Investors closely monitor consumer spending because it represents about 70 percent of U.S. gross domestic product, which measures the value of final goods and services produced.

"Looking ahead, consumers' outlook for business conditions, the job market and their income prospects is quite pessimistic and suggests further weakening may be on the horizon," Lynn Franco, director of the group's consumer research center, said in a release last month.

Several companies last week said the slow economy has mad an impact on their earnings.

Johnson Outdoors Inc., an outdoor recreation company, on Friday said its second-quarter profit dropped 74 percent due to soft demand for boats and slow military sales.

Columbia Sportswear Co., which makes outdoor apparel and footwear, on Thursday said first-quarter profit fell 24 percent amid a weak consumer environment.

Restaurant operator BJ's Restaurants Inc. on Thursday said first quarter profit rose 92 percent from the year-ago period, while sales also rose 22 percent but missed analyst estimates.

While same-store sales, which are sales in stores open at least one year, overall were flat, the company said restaurants in Southern California and the Phoenix area had weaker same-store sales due to the slowing economy.