U.S. consumer sentiment fell in March to the lowest since 2011 despite the level of jobless claims declining to the lowest level in decades and unemployment likely sinking to multi-decade lows.
The University of Michigan’s sentiment index dropped to 59.4, from 62.8 in February, data released Friday showed. This was lower than the mid-month read of 59.7. Economists had projected no further deterioration from the mid-month reading.
“Inflation has been the primary cause of rising pessimism, with an expected year-ahead inflation rate at 5.4 percent, the highest since November 1981,” said Richard Curtin, the surveys chief economist, in a statement.
