US consumer sentiment inches lower in March

Consumer sentiment eroded ever-so-slightly in early March, according to media reports of research at the University of Michigan…

Consumer sentiment eroded ever-so-slightly in early March, according to media reports of research at the University of Michigan.

The University of Michigan consumer sentiment index fell to 94.1 in March from 94.4 in February.
The drop was slightly below expectations that sentiment would remain at 94.4.

"Consumer expectations are still in a state of flux," said Mr Richard Curtin, head of consumer research at the school.

Twice as many consumers had an unfavorable view of the economic policies of the Bush administration as had a favorable view.

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The current conditions index rose to 105.7 from 103.6 in February. Other than January's suspect reading of 109.5, it's the highest level for current conditions since early 2001.

The expectations index fell to 86.6 from 88.5 in February. It's the lowest since October, but well above lows seen in early 2003 just before the Iraq war started.

In March, worries about global outsourcing, high productivity, slow job growth and higher gas prices weighed on consumers, researchers said. On the other hand, consumers were more upbeat about their own finances. More consumers said their incomes rose in early March than said they fell.

AFP