Consumer Confidence Drops From Five-Year High
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American consumer confidence declined in March from a five-year high as gasoline prices rose, stocks fell, and the housing recession showed few signs of ending.
The New York-based Conference Board’s index of consumer confidence retreated more than forecast to 107.2, from 111.2 in February. The survey also said fewer Americans planned to buy a house, while the S&P/Case-Shiller index showed home prices dropped in January for the first time in at least six years.
The reports pushed stocks lower as investors fretted that consumer spending will weaken. The Conference Board also observed that jobs are plentiful, suggesting rising wages may yet shield most consumers from the worst of the housing downturn.
“Gas prices are weighing on confidence, and the stock-market volatility and all the reports on the subprime mortgage fiasco are shaking people,” an economist at JPMorgan Chase & Co., Michael Feroli, said.
