U.S. consumer confidence in early June plunged to its lowest level in 28 years, an indication American adults are becoming increasingly concerned about rising energy and food prices, job layoffs, and the prospects for a U.S. economic recovery.

The Reuters/University of Michigan Surveys of Consumers said its reading of confidence fell to 56.7 in June from 59.8 in May.

It was the index's lowest reading since May 1980 -- a period also characterized by high oil/gasoline prices and a sluggish U.S. economy.

Economists surveyed by Bloomberg News had predicted that the May index would fall to 59.8. The index stood at 62.8 in April 2008 and 69.5 in March.

U.S. public: jittery

Economist Peter Dawson told BloggingStocks Friday, June's consumer sentiment reading shows an American public "with a warranted case of the jitters."

"We have a difficult economic landscape, from the standpoint of the typical person or employee. Consumers are seeing gasoline and food prices rise by the week, and they're concerned about job losses," Dawson said. "When you combine job worries with price rises just about everywhere you look, it doesn't breed consumer confidence, so it's not surprising the [University of] Michigan survey reading is at its low point in decades."

Further, Dawson said he doesn't have a magic wand, but if he could change one economic fundamental it would be oil prices.

"A lot of economists would probably cite interest rates, and a rate cut from the Fed, but I'd cite oil prices. Oil prices affect so much economic activity, from household appliances that use plastics, to prescription drugs, to how we travel. It's a major cost driver and if oil prices move lower consumer disposable income would also rise, and so would GDP," Dawson said.