U.S. consumer confidence falls sharply in March

Americans are less confident in the economy this month than they were in February as massive government spending cuts have stoked economic uncertainty. It’s just the latest swing in the way Americans feel about the economy. Their views have fluctuated between optimism and angst in recent months as they’ve weighed an advancing stock market and housing recovery against new economic challenges. The Conference Board, a New York-based private research group, says that its Consumer Confidence Index fell in March to 59.7 from a revised reading of 68 in February. The March index is considerably lower than the 68.7 reading that analysts polled by research firm FactSet had expected—and far off from 90, a reading that indicates a healthy economy. Economists closely watch the confidence index because it serves as a monthly gauge of how Americans feel about their jobs, incomes and other bread-and-butter issues. Such sentiment has national importance because consumer spending accounts for 70% of U.S. economic activity. The Conference Board’s survey was conducted from March 1 through March 14. The sharp decline in the March index was caused mainly by a drop in expectations for the economy, though consumers also were more pessimistic regarding current economic conditions, the group says.