ANN ARBOR, Mich. – Optimism among U.S. consumers fell to its lowest level in 16 years, in preliminary March results released today by the Reuters / University of Michigan Surveys of Consumers. Respondents’ view of current conditions brightened slightly this month, but meanwhile, their inflation fears rose and future expectations dimmed.
The survey’s Consumer Sentiment Index dipped 0.4 percent this month to 70.5 points, from last month’s 0.8 points and January’s 78.4, in what Bloomberg News said was the lowest reading since February 1992. The new reading was 17.6 percent below the 2007 average of 85.6 points, but still exceeded the 69.0-point median prediction from a Reuters survey of economists.
The survey’s Current Conditions Index rose to 84.6 points in March from 83.8 the month before, an increase of 1.0 percent. But the Expectations Index – an indicator of future consumer spending – fell 1.6 percent to 61.4 points from February’s 62.4.
Consumers’ expectation of inflation a year from now continued to rise this month – climbing to 4.5 percent, from 3.6 percent in February and 3.4 percent in January and December – even consumer prices held steady in February, according to a federal report released today. (READ MORE)
Another measure of the national mood – The Conference Board’s Consumer Confidence Index – fell sharply in February as high fuel prices, the housing slump, the credit crunch and a weakening job market continued to weigh on consumers nationwide. (READ MORE)
The Reuters/University of Michigan Surveys of Consumers report is produced each month by the University of Michigan and distributed by Reuters. Additional information is available at www.sca.isr.umich.edu.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
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