U.S. consumer confidence in April fell to its lowest level since March 1982, according to a report Friday.

The Reuters/University of Michigan consumer-sentiment survey declined to 62.6 in April from 69.5 in March. Nine out of 10 respondents said they believed the economy is now in recession, and many said they expect to use government rebate checks to pay down debt or increase savings. That could keep consumer spending, a main engine of economic growth, sluggish.

"Sentiment...