Consumer Sentiment Slides in March

New York, March 30, 2007--Consumer sentiment dropped in March to its lowest level in six months, according to the Reuters/University of Michigan Surveys of Consumers.

The index reflecting the survey’s final March reading fell to 88.4 from 91.3 in February, reaching it lowest point since hitting 85.4 in September 2006. The preliminary index for March was 88.8.

Analysts had been expecting a reading of 88.5.

Rising gasoline prices and slowing income gains took its toll on the consumers during the Month, according to the survey. The statement released with the index said, “Soaring gas prices have the potential to drive confidence down in the coming months, especially among lower-income households."

The survey's gauge of current economic conditions fell to 103.5 in March from 106.7 in February. Its final measure on consumer expectations also fell to a six-month low of 78.7 from 81.5 at the end of February.