By Ruth Mantell, MarketWatch
WASHINGTON (MarketWatch) — Consumer sentiment in March declined for the first time since August, as rising gasoline prices contributed to a downturn in expectations, according to a key gauge released Friday.
The University of Michigan and Thomson Reuters said sentiment fell to 74.3 in a preliminary reading for March from a final level of 75.3 for February. U.S. stocks struggled after the sentiment data published. Read more about stocks.
Opposing forces are impacting consumers — recent employment news has been positive, while gasoline prices are on the rise. According to the Energy Information Agency, gas prices averaged $3.88 a gallon last week, up from $2.72 at the beginning of the year. Read more about jobs.
That helped drive one-year inflation expectations up to 4% in March from 3.3% in February, according to UMich. Elsewhere Friday, the government reported that the cost of living is accelerating, with sharply higher gas prices. Read more about inflation.
The sentiment gauge, which covers how consumers view their personal finances as well as business and buying conditions, averaged about 87 in the year before the start of the most recent recession.
Analysts watch sentiment data to get a feel for the direction of consumer spending. Economists polled by MarketWatch had expected a March reading of 76.5. See economic calendar.
UMich’s barometer of consumers’ expectations for the economy decreased to 68 in March from 70.3 in February. Meanwhile, a gauge of views on current conditions increased to 84.2 from 83.
