US consumer sentiment remains at lowest in decade

By Ovunc Kutlu

ANKARA (AA) - US consumer sentiment in March remained at its lowest level in the past decade, a University of Michigan survey revealed on Friday.

The index of consumer sentiment declined 3.1 points to 59.7 in March, from 62.8 in February, according to preliminary results of a survey compiled from around 500 consumers.

The index of current economic conditions decreased 0.4 points to 67.8 in March, down from 68.2 in February.

The index of consumer expectations plummeted 5 points to 54.4, from 59.4, during that period.

"Consumer Sentiment continued to decline due to falling inflation-adjusted incomes, recently accelerated by rising fuel prices as a result of the Russian invasion of Ukraine," Richard Curtin, the chief economist with Surveys of Consumers, said in a statement.

Curtin stressed that the expected inflation rate for the year ahead rose to its highest level since 1981, while the expected gas prices posted their largest monthly upward surge in decades.

"Consumers held very negative prospects for the economy, with the sole exception of the job market," he added.

"This underlying strength in jobs comes at the cost of pushing inflation even higher due to unrelenting pressures on aggregate demand and supply lines," he noted.