U.S. Michigan Consumer Sentiment Index Falls More Than Estimated to 68.2

[Purveyor]

Source: Bloomberg

By Shobhana Chandra

March 11 (Bloomberg) -- Confidence among U.S. consumers fell more than forecast in March as a surge in fuel prices threatened to squeeze household budgets.

The Thomson Reuters/University of Michigan preliminary index of consumer sentiment fell to 68.2, the lowest in five months, from 77.5 in February. The gauge was projected to decline to 76.3, according to the median estimate of 68 economists in a Bloomberg News survey. The index of expectations plunged to the lowest level since March 2009.

The nine-point drop in sentiment this month was the biggest since October 2008, the last time average gasoline prices topped $3.50 a gallon. A report earlier today showed retail sales rose by the most in four months in February, suggesting fuel costs have yet to restrain the consumer spending that makes up 70 percent of the economy.

“Consumers are reacting to the run-up in gas prices, which accelerated in the middle of February,” said Ryan Wang, an economist at HSBC Securities USA Inc. in New York. “It’s taking up a bigger portion of their wallet. If fuel prices rise even further, it could be a threat to consumer spending.”

Read more: http://noir.bloomberg.com/apps/news?pid=20601087&sid=adHTc17h71fc&pos=3

[xchrom]

1. unrecing this? -- hmmm wonder why? nt

[Shadowflash]

2. +1!