The Business World

In May an important and key measure of consumer confidence reached an all time low as it dropped the most it has ever done in 16 years. The reason for this is that many Americans are worried about the future of their jobs and the business conditions.

The New York-based Conference Board said Tuesday that its Consumer Confidence Index dropped to 57.2, the lowest level since October 1992, from a revised 62.8 in April. Economists had expected the index to decline to 61, according to a consensus compiled by Briefing.com.

This week an analyst stated that Bed Bath & Beyond is going to lose consumers throughout the coming months. The home furnishings retailer was hoping that when Linens ‘n Things closed some of the store as part of a bankruptcy plan business would pick up. However, that doesn’t seem to be the case.

PiperJaffray analyst Neely J.N. Tamminga said in a research note that consumers are more likely to turn to lower-priced home furnishings, and discounters are more likely to benefit from the Linens ‘n Things 120 store closures.

American Airlines is cutting the U.S. capacity as close to as 12% and will be getting rid of 85 jets that will cause job cuts. They are hoping that this will help to counteract the fuel prices and slow demand.

AMR fell the most since September in New York trading. The reduction in domestic seating is more than twice what American had announced in April, and is the third cut in 2008. AMR also will add a $15 fee for the first checked bag.