US consumers less confident for the first time in 34 years
Consumer confidence took an unexpectedly sharp hit, dropping to a five-year low in March, the Conference Board said on Tuesday, as expectations for the future tumbled to their lowest in 34 years.
By Agencies |
NEW YORK : Consumer confidence took an unexpectedly sharp hit, dropping to a five-year low in March, the Conference Board said on Tuesday, as expectations for the future tumbled to their lowest in 34 years. Consumers continued to fret over job prospects, the Conference Board said, as the labour market continues to tighten amid an economic slowdown brought on by the worst housing slump in a generation. The Conference Board said its index of consumer sentiment fell in March to 64.5 ��� its lowest since March 2003 ��� from an upwardly revised 76.4 in February.
The median forecast of economists was for a reading of 73.5 in March. February's index was originally reported at 75. The Conference Board, a private business and research organisation, said its expectations index fell to 47.9 ��� its lowest since January 1974 ��� from an upwardly revised 58 in February.
In another troubling sign, the measure of ���jobs hard to get��� rose to 25.1 in March ��� the highest since October 2005 ��� from a slightly downwardly revised 23.4 in February. The measure of ���jobs plentiful��� fell to 18.8 in March ��� the lowest since November 2004 ��� from an upwardly revised 21.5 in February. ���The labour component of the confidence index, especially, is worth pointing out,��� said Josh Stiles, senior bond strategist at research consultancy Ideaglobal in New York. ���Most Americans are stretched right now and not spending at a normal pace. This is significant.���
On Wall Street, stocks losses extended, while the dollar extended its losses against the Japanese yen. US Treasury bonds, which usually benefit from signs of economic weakness, extended earlier gains following the report.
The median forecast of economists was for a reading of 73.5 in March. February's index was originally reported at 75. The Conference Board, a private business and research organisation, said its expectations index fell to 47.9 ��� its lowest since January 1974 ��� from an upwardly revised 58 in February.
In another troubling sign, the measure of ���jobs hard to get��� rose to 25.1 in March ��� the highest since October 2005 ��� from a slightly downwardly revised 23.4 in February. The measure of ���jobs plentiful��� fell to 18.8 in March ��� the lowest since November 2004 ��� from an upwardly revised 21.5 in February. ���The labour component of the confidence index, especially, is worth pointing out,��� said Josh Stiles, senior bond strategist at research consultancy Ideaglobal in New York. ���Most Americans are stretched right now and not spending at a normal pace. This is significant.���
On Wall Street, stocks losses extended, while the dollar extended its losses against the Japanese yen. US Treasury bonds, which usually benefit from signs of economic weakness, extended earlier gains following the report.
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