The soaring cost of basic foodstuffs and weakening labour market sent US consumer confidence spiralling to a 26-year low this month compounding the gloomy outlook for the US economy.

Consumer confidence as measured by the Reuters/University of Michigan consumer sentiment survey fell to 63.2 in mid-April, from 69.5 in March, the lowest since 1982 and much weaker than a reading of 68 forecast by economists.