WASHINGTON (MNI) – The final reading of U.S. consumer sentiment in
March fell by 0.7 points, dropping to its lowest level since November
2009, according to the Reuters/University of Michigan Consumer Sentiment
survey released Friday.
The index came in at 67.5 — below median expectations of 68.0 —
vs. the preliminary reading of 68.2 reported earlier this month and
February’s final reading of 77.5. The consumer sentiment index was 74.2
in January and 74.5 in December.
The index’s final reading for current conditions in March was
reported at 82.5, vs. 83.6 in the preliminary report. This compares to
86.9 in February and January’s final reading of 81.8.
Final expectations dropped further to 57.9 vs. 58.3 in the first
half of March, after coming in at 71.6 last month and 69.3 in January.
The final March reading for consumer expectations was the lowest since
March 2009.
Consumers’ preliminary 1-year inflation expectations for March was
4.6%, unchanged vs. March’s preliminary reading and up vs. February’s
expectation of 3.4%. Five-year inflation expectations were also
unchanged at 3.2% vs. the first half of March.
As part of its effort to better manage the public’s inflation
expectations, which have risen in recent months due to higher energy and
food prices, the Federal Reserve Thursday announced that Fed Chair Ben
Bernanke will hold press briefings after four FOMC meetings a year to
present the FOMC projections and provide context for monetary policy
decisions in the effort to “enhance the clarity and timeliness” of those
decisions.
** Market News International Washington Bureau: 202-371-2121 **
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