The American Customer Satisfaction Index fell in the first quarter of 2005, an indication that there might be further economic slowdown on the horizon. The ACSI for the first quarter of 2005 stands at 73.0, down 0.8 percent from last quarter. The factors driving this decline are falling inflation-adjusted wages, rising energy prices and declining quality. The sectors with the biggest deterioration in customer satisfaction were hospitals, newspapers and wireless service providers. Claes Fornell, director of the ACSI and a University of Michigan business professor, says that declining customer satisfaction may have a negative effect on the economy and particularly on consumer spending growth.

“This quarter’s decline in customer satisfaction adds more uncertainty to the economy,” Fornell says. “The economy’s ability to generate increasing consumer utility is central to economic health and real economic growth. As declining customer satisfaction erodes consumer demand, a bounce back in spending next quarter is less likely.”

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