Consumer confidence hits 26-year low

Consumer confidence across the country has dropped to its lowest level in 26 years.

Friday's new Consumer Confidence study from the University of Michigan showed that high food and fuel prices, coupled with shrinking incomes and falling home values, are pushing consumers to save their money rather than spend it.

The survey's Index of Consumer Sentiment, a closely watched indicator of the economy's current health, fell to 62.6 in April, a drop of 6.9 points from the previous month and the lowest level since 1982.

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According to the survey, only 30 percent of consumers plan to spend their upcoming tax rebate, while the rest said they would use it to pay off debt or put it into savings.