U.S. consumer sentiment fell more than expected in early March as gasoline prices surged to a record high in the aftermath of Russia's war against Ukraine, boosting one-year inflation expectations to the highest level since 1981, Reuters reported. The third straight monthly decline reported by the University of Michigan on Friday pushed consumer sentiment to its lowest level in nearly 11 years. It said 24% of respondents "spontaneously mentioned the Ukraine invasion in response to questions about the economic outlook." The University of Michigan's preliminary consumer sentiment index dropped to 59.7 in the first half of this month, the lowest reading since September 2011, from a final reading of 62.8 in February. Economists polled by Reuters had forecast the index falling to 61.4. The survey places more emphasis on gasoline prices and the stock market. The Conference Board's consumer confidence index, which puts more weight on the labor market, remains well above its COVID-19 pandemic lows. Economists said that the continued slump in the University of Michigan's sentiment index was overdone relative to fundamentals and they expected the economy to continue growing.
