U.S. Consumer Sentiment Declines In March

In keeping with signs that the labor market is approaching a trough but remains frail, the consumer sentiment index fell from 73.6 in February to 72.5 in March. Economists expected the index to hit 74 in March.

While Congress is working on several job-stimulus proposals, recent readings on confidence indicate that pessimism prevails among Americans about their economic prospects and the labor market. The Michigan current conditions index fell to 80.8 from 81.8, while the consumer expectations reading dipped to 67.2 from 68.4. One-year inflation expectations rose to 2.8% in March from 2.7% in February. The five-year outlook remained at 2.7%.