NEW YORK - The consumer confidence index fell to 63.4 in March from an upwardly revised 72.0 last month, The Conference Board reported Tuesday.
Economists polled by Thomson Reuters predicted the index would be 65.0.
The February index was originally reported as 70.4.
The present situation index jumped to 36.9 from an upwardly revised 33.8, originally reported as 33.4, while the expectations index dropped to 81.1 from an upwardly revised 97.5 last month, originally reported as 95.1.
“The sharp decline in confidence was prompted by a sharp decline in expectations,” said Lynn Franco, director of The Conference Board's Consumer Research Center. “Consumers’ inflation expectations rose significantly in March and their income expectations soured, a combination that will likely impact spending decisions. On the other hand, consumers’ assessment of current conditions improved, indicating that while the short-term future may be uncertain, the economy continues to expand.”
Business conditions were called “good” by 15.1% of respondents in March, an increase from 12.4% the prior month. Those saying conditions are “bad” slipped to 37.0% from 39.3%.
The percentage of consumers expecting a pickup in business conditions in the next half year fell to 20.6% from 25.2%, while 16.2% said they expect conditions to worsen, up from 10.3% the prior month.
On the jobs front, those who believe jobs are “plentiful” declined to 4.4% in March from 4.9% in February, while the number saying jobs are “hard to get” increased to 44.6% this survey from 44.4%. The respondents who see more jobs becoming available in a half year, slid to 19.9% from 21.2%. Those expecting fewer jobs to become available grew to 20.7% from 15.0%, The Conference Board reported.
Income expectations were worse, with 15.3% of consumers anticipating an increase in their income in the next six months, off from the prior month's 17.4%, while 15.3% expect their income to decrease, up from 13.2% in the prior month’s survey.
The number of consumers who expected to buy a home in the next six months decreased to 3.8% from 4.9%, while the number of respondents planning to buy a car fell to 10.9% from 12.8%. Fewer consumers than last month said they plan to buy a major appliance in the next six months (42.0% vs. 47.5%).
Fewer respondents than last month (45.5% vs. 51.1%) expect to take a vacation in the next six months, but more said they would stay in the U.S. rather than leave the country. Cars rather than airplanes were the preferred mode of travel, by a 25.6%-23.1% margin.
The consumer confidence survey is based on a probability design random sample by the Nielsen Company.
