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- U.S. consumer sentiment index drops less than expected in early March
U.S. consumer sentiment index drops less than expected in early March
A report from the University of Michigan revealed on Friday the preliminary reading for the Reuters/Michigan index of consumer sentiment fell to 95.9 in early March. That was the lowest reading since October 2019.
Economists had expected the index would decrease to 95.0 this month from February's final reading of 101.0.
According to the report, the index of current U.S. economic conditions declined to 112.5 in March from 114.8 in the previous month. Meanwhile, the index of consumer expectations fell to 85.3 this month from 92.1 in February.
The report noted that consumer sentiment fell in early March due to the spreading coronavirus and the steep declines in stock prices. However, it stressed that "the initial response to the pandemic has not generated the type of economic panic among consumers that was present in the runup to the Great Recession. Nonetheless, the data suggest that additional declines in confidence are still likely to occur as the spread of the virus continues to accelerate."
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