DOW JONES NEWSWIRES
Consumer confidence fell again in March, with a majority of
Americans again expecting worsening economic conditions as rising
gas prices cut into spending on other discretionary items,
according to Discover Financial Services's (DFS) monthly
consumer-spending index.
Discover's U.S. spending monitor fell 2.6 points to 89.5 in
March, the first time since December the index has fallen below
90.
"High gas prices inevitably take a bite out of consumers'
budgets," Discover brand and product management executive Julie
Loeger said. "Though we know our economy counts on discretionary
spending in order to grow, spending less on baseball tickets, new
home appliances or a family vacation makes financial sense when
consumers are feeling pain at the pump."
The percentage of 8,200 U.S. consumers polled who rated the
economy as poor held at 53% in March, essentially the same number
as in February, while 35% viewed it as fair. Only 10% considered
the economy good or excellent.
The percentage of those surveyed who said economic conditions
are worsening jumped seven points from February to 51%, its highest
number since last September. Another 20% said conditions are the
same, while 25% expected the economy to improve.
More consumers also saw their personal finances deteriorating,
with 48% seeing a decline, up three points from last month.
Slightly less than a third rated their current finances as good or
excellent. Another 42% saw their finances as fair, and 24% said
they poor.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com