U.S. consumers still struggle, companies say

By Nicole Maestri

NEW YORK (Reuters) - Life is not getting easier for the American consumer, according to three big companies whose wares range from fast food to consumer goods to credit cards.

Despite government data on Wednesday showing that parts of the economy are stabilizing, Capital One, Wal-Mart and Burger King indicated that consumers are still buckling under the weight of the recession.

Capital One Financial Corp, a leading issuer of MasterCard and Visa credit cards, said U.S. credit card defaults rose in March as unemployment soared. On a brighter note, American Express Co, saw defaults rise only slightly, a sign that higher-end cardholders can pay their bills.

But Burger King Holdings Inc saw a surprise drop in customer visits to its hamburger restaurants in March.

And the head of Wal-Mart Stores Inc, the world's biggest retailer, said he does not anticipate a quick end to the recession as consumers face mounting job losses.

"There's still a lot of stress," Wal-Mart CEO Mike Duke said on a taped interview on NBC's "Today Show."

"It's not a 'V' recession, where we're just going to bounce out and come back," he said.

The latest comments come a day after a government report showed that sales at U.S. retailers unexpectedly fell 1.1 percent last month. On Wednesday, the Labor Department said U.S. consumer prices posted a surprise drop in March, recording their first 12-month decline in nearly 54 years.