The consumer confidence survey from the University of Michigan found that consumer confidence is now at its lowest level in 26 years. The survey found that high food and fuel prices, combined with shrinking incomes and falling home values have caused many consumers to save their money rather than spend it. The indicator fell to 53.3 in April, which marks a 6.9 point decline from the previous month.

The economic stimulus rebates due to begin arriving in mailboxes next week should help boost spending temporarily, but a continued rise in food and gas prices will continue to cause consumers to spend less money. Moreover, the survey found that only 30% of consumer plan to spend their upcoming tax rebates, while the rest said they would use it to  pay off debt or put it into savings.

The survey also noted that 90% of consumers believed the economy was in a recession and 75% believed the economic problems will persist for another year. Finally, a third of those surveyed said that they were reigning in spending because of uncertainty about unemployment and income.

In the end, this is bad news for the economy that continues to struggle with a variety of problems.