Consumer sentiment plunges to 26-year low (Ruth Mantell)

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WASHINGTON (MarketWatch) -- High prices for food and fuel, weak income growth and falling home values pulled down consumer sentiment in April, according to a report released Friday.

The U.S. consumer sentiment index declined to 62.6 in April -- the lowest level in 26 years -- from 69.5 in March, according to the latest gauge compiled by the University of Michigan/Reuters.

Economists surveyed by MarketWatch were looking for a final April result of 63.0. An earlier estimate for April was 63.2.

"The recent acceleration in the loss in confidence indicates a longer and potentially deeper recession," according to Richard Curtin, survey director. "All households now anticipate smaller income gains and larger price increases, as just one-in-five now expect their overall finances to improve during the year ahead, the least favorable reading in more than a quarter century."

The expectations index fell to 53.3 -- marking the lowest level since November 1990 -- from 60.1 in March. And the current conditions index in April declined to 77.0 -- the lowest level since November 1982 -- from 84.2 in March.

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