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Consumers are still confident in the economy, but not as much as they were last summer.
The numbers: Consumer confidence fell sharply in March, extending a recent up-and-down pattern that reflects greater worries about the U.S. economy.
The consumer confidence index dropped to 124.1 from 131.4 in February, the Conference Board said Tuesday. That’s the second lowest rate in a year.
Economists polled by MarketWatch had forecast a 133 reading.
What happened: Americans grew less confident in March in their ability to find a job or the state of American business, according to a survey of how they fell right now. The so-called present situation index sank 12 points 160.6, marking the biggest one-month decline since the middle of the last recession in 2008.
Another measure of how Americans think the economy will be six months from now posted a smaller 4-point drop to 99.8.
What they are saying?: “Confidence has been somewhat volatile over the past few months, as consumers have had to weather volatility in the financial markets, a partial government shutdown and a very weak February jobs report,” said Lynn Franco, director of economic indicators at board.
“Despite these dynamics, consumers remain confident that the economy will continue expanding in the near term,” she added. “However, the overall trend in confidence has been softening since last summer, pointing to a moderation in economic growth.”
Read: Why the markets aren’t buying the Fed’s claims about the strength of the U.S. economy
Big picture :“ The U.S. economy slowed toward the end of last year and got off to a sluggish start in 2019. The construction and manufacturing trades have softened and consumer spending has also tapered off.
Most economists predict growth will speed up in the spring in a replay of recent years, but not as rapidly as the economy grew last year. A weaker global economy and persistent trade tensions with China are part what’s holding the U.S. back.
Read: Home price growth slows to 6.5-year low
Read: The Fed is gun-shy because of a quarter-century of low inflation
Market reaction: The Dow Jones Industrial Average DJIA, +0.81% and S&P 500 SPX, +0.83% rose sharply in Tuesday trades, but gains were pared after the drop in consumer confidence.
The 10-year Treasury yield TMUBMUSD10Y, +1.18% was little changed at 2.44%. Many loans such as mortgages and auto loans are tied to changes in the 10-year note, whose yield has fallen from a seven-year high of 3.23% in October.
