Shoppers look over the offerings at the new Trader Joe’s store in Boulder, Colorado February 14, 2014.
(Photo: REUTERS/RICK WILKING)
A gauge of consumer sentiment from Thomson Reuters and the University of Michigan fell to 91.2 in March from a prior reading of 95.4 in February. The reading missed Wall Street expectations for an increase to 95.5.
“Consumer optimism slipped in early March among lower- and middle-income households,” said Richard Curtin, chief economist at Michigan’s survey of Consumers. “The renewed concerns expressed by lower- and middle-income households mainly involved income declines and higher utility costs–as well as disruptions to shopping and businesses due to the harsh winter.”
The report, which showed declining sentiment was concentrated in lower-income households, came after the Commerce Department said this week U.S. retail sales fell for the third consecutive month, indicating a slowdown in consumer spending.
With consumer sentiment still at healthy levels but appearing to weaken, the index is the latest piece of data making the case for a downward revision to gross domestic product in the first quarter.
This month’s preliminary current conditions index fell to 103.0 from 106.9 at the end of February. The expectations index declined to 83.7 from 88.0.
