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Iceland consumers confidence falls in May

Published 05/26/2009, 08:53 AM
Updated 05/26/2009, 08:56 AM

STOCKHOLM, May 26 (Reuters) - Consumer confidence in crisis-hit Iceland fell in May, breaking three straight months of gains, data from pollster Gallup showed on Tuesday.

The index came in at 29.9 points, down 23.2 percent from April, Gallup said in a statement.

The May reading compares with 39.0 points in April but is still above the record low of 19.5 reached in January -- the lowest since measurements began in 2001.

The island is reeling from the collapse of its commercial banks and currency last year, which forced it to seek a multi-billion dollar aid package from the International Monetary Fund and its European neighbours.

The country's economy is seen shrinking more than 10 percent this year as private consumption plunges.

Prime Minister Johanna Sigurdardottir said on Monday the country faced more fallout from the crisis as the government prepares Icelanders for sharp budget cuts. (Editing by Stephen Nisbet)

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