US consumer confidence plunges again in March: study

WASHINGTON: Consumer confidence in the United States declined sharply again in March, falling more than analysts had expected, according to a study on Friday that cited economic turbulence now that Donald Trump is back in power.

An index measuring consumer confidence compiled by the University of Michigan fell to 57.9 in March, down from 64.7 a month earlier, weighed down by the seeming chaos of Trump´s tariff policy and fears of high inflation. That marked a drop of 10.5 per cent in the index in one month and 27.1 per cent over the past year.

Analysts had expected a smaller decline, to 63.2, according to a survey published by MarketWatch.“While current economic conditions were little changed, expectations for the future deteriorated across multiple facets of the economy, including personal finances, labour markets, inflation, business conditions and stock markets,” the University of Michigan said in a statement accompanying the survey numbers.

“Many consumers cited the high level of uncertainty around policy and other economic factors,” it added.The statement said, “frequent gyrations in economic policies make it very difficult for consumers to plan for the future, regardless of one’s policy preferences.” The University of Michigan index for February, which also dropped sharply, was like a bucket of cold water for financial markets because the sentiment and spending habits of Americans largely determine the health of the US economy.