New York, Mar.28-- The University of Michigan's final March index of consumer sentiment fell for a third straight month to 77.6, its lowest since September 1993, from 79.9 in February. That was better than a mid-month reading of 75.0 and a 75.3 forecast by economists, perhaps helped by optimism after early successes of U.S.-led forces.
But the erosion in confidence has taken its toll on spending, with retail sales, auto sales and even the robust housing market all showing signs of weakening. A persistent retrenchment by consumers would likely tip the economy back into recession.
The current conditions index, which tracks consumers' attitudes about their present financial situation, fell to a final reading of 90.0 in March from 95.4 in February and a mid-month reading of 87.1. The expectations index, which gauges the 12-month outlook, fell to 69.6 from 69.9 in February but was above a mid-month reading of 67.2.
The final University of Michigan consumer sentiment survey is based on telephone interviews with 500 households across the country on personal finances and business and buying conditions. Data was gathered both before and after the outbreak of hostilities in Iraq.
