ANKARA
The harsh winter in many parts of the U.S. soured consumer sentiment, the Thomson Reuters University of Michigan Consumer Sentiment survey showed Friday.
The index of consumer sentiment, based on highly regarded Thomson Reuters University of Michigan survey, dropped to 91.2 in March from 95.4 in February.
The drop in confidence was concentrated among lower- and middle-income households, the ones most affected by rising heating bills and higher prices at the gas pump. The report also showed consumer buying plans were little changed.
The decline surprised analysts, most of whom had forecast a slight gain.
Richard Curtin, chief economist on the survey, said that consumer optimism slipped in early March among lower and middle income households (-6.5 percent from February) while confidence improved among households with incomes in the top third (+3.2 percent).
"The renewed concerns expressed by lower and middle income households mainly involved income declines and higher utility costs as well as disruptions to shopping and businesses due to the harsh winter," Curtin explained in a note with the survey results.
Among those with incomes in the top third, strong gains were concentrated in the near term outlook for the economy and buying plans.
But Curtin pointed out that the overall level of consumer confidence remains favorable enough to support 3.3 percent growth rate in personal consumption expenditures during 2015.
The Federal Reserve has linked its decision to raise interest rates on economic data results like that of the survey.
