US consumer confidence in March dropped sharply to its lowest point in five years, while consumers' outlook for the next six months hit a low not seen in 35 years, a key consumer survey said today.
The New York-based Conference Board said its preliminary Consumer Confidence Index for March fell about 12 points to 64.5, from an upwardly revised 76.4 in February. That was the lowest consumer confidence reading since March 2003.
Analysts were expecting a more modest decline to 73. The Conference Board's preliminary March survey measured consumer sentiment in 5,000 households as of March 18th, and could be revised next month.
The survey also showed the Expectations Index, which measures consumers' outlook for the next six months, fell about 10 points to 47.9 from 58 in March.
"The Expectations Index, in fact, is now at a 35-year low, levels not seen since the Oil Embargo and Watergate," said Lynn Franco, director of the Conference Board Consumer Research Center.
The survey's Present Situation Index, which measures how shoppers feel now about economic conditions, also fell sharply to 89.2 from 104.0 in February.
"The decline in the Present Situation Index implies that the pace of growth in recent months has weakened further," Franco said.
"Looking ahead, consumers' outlook for business conditions, the job market and their income prospects is quite pessimistic and suggests further weakening may be on the horizon."
Agencies