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 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,” Franco said. “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% in February. Those saying conditions are “bad” slipped to 37.0% from 39.3%.
