WASHINGTON (MNI) – The following is the text of the April
IBD/TIPP Consumer Optimism report released Tuesday:

The IBD/TIPP Economic Optimism Index continued last month’s
decline, falling 2.2 points in April, or 5.1%, to 40.8 vs. 43.0 in
March. The index is 5.5 points below its 12-month average of 46.3 and
3.6 points below its reading of 44.4 in December 2007, when the economy
entered into the recession. It is 9.7 points below its all-time average
of 50.5. This month the index also undercuts it previous low of 41.1,
set in October 2008 during the sub-prime turmoil 30 months ago.

Note: Index readings above 50 indicate optimism; below 50 indicate
pessimism.

The IBD/TIPP Economic Optimism Index has a good track record of
foreshadowing the confidence indicators put out later each month by the
University of Michigan and The Conference Board. IBD/TIPP conducted the
national poll of 903 adults from April 4 to April 10. The margin of
error is +/-3.3 percentage points.

The IBD/TIPP Economic Optimism Index has three key components, all
of which declined in April.

– The Six-Month Economic Outlook, a measure of how consumers feel
about the economy’s prospects in the next six months, dropped 0.9
points, or 2.3%, to 38.8, its 12-month low. When compared to December
2007, the index shows a gain of 6.7 points.

– The Personal Financial Outlook, a measure of how Americans feel
about their own finances in the next six months, declined 2.0 points, or
4.0%, to reach 48.2, its 12-month low.

– Confidence in Federal Economic Policies, a proprietary IBD/TIPP
measure of views on how government economic policies are working, fell
3.5 points, or 9.0%, to reach 35.5, its 12-month low.

“Over a short period of two months we have experienced an
unprecedented erosion of 10-points in consumer confidence. The high
price for gasoline is the chief culprit. Seventy percent of Americans
say they are affected by gasoline prices,” said Raghavan Mayur,
president of TIPP, a unit of TechnoMetrica Market Intelligence, IBD’s
polling partner.

“Americans have that sinking feeling again as they empty their
wallets to pay their rising gasoline bills,” said Terry Jones, associate
editor of Investor’s Business Daily. “Economic slumps and recessions
often follow major jumps in energy prices. With more money being
siphoned from the rest of economy to pay for energy, overall economic
growth could be imperiled.”

The Breakdown

This month, only two of the 21 demographic groups that IBD/TIPP
tracks were above 50 on the Economic Optimism Index. Seventeen groups
declined on the index.

On the Economic Outlook component, only one of the 21 groups that
IBD/TIPP tracks scored in optimistic territory. Twelve groups
declined.

On the Personal Financial component, five of the groups IBD/TIPP
tracks scored in optimistic territory. Four groups advanced on the
component and seventeen declined.

On the Federal Policies component, only two of the 21 demographic
groups tracked were above 50. Twenty groups declined in April.

** Market News International Washington Bureau: 202-371-2121 **

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