Consumer Sentiment Weakens In March

The preliminary reading of the University of Michigan Consumer Sentiment Index came in lower than expected in March as consumers continued to fret about the labor market.

The March reading for the overall index was 72.5 versus the 74.0 consensus. The February reading was 73.6.

The survey's gauge of current economic conditions fell to 80.8 from February's final reading of 81.8.

The index of consumers' 12-month outlook also fell to 74 from a reading of 80 in February.

Consumer sentiment is closely watched because it often moves in-line with consumer spending habits. Since consumer spending accounts for roughly 70% of GDP, investors are keen to know how consumers may behave in the future.