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• March 26, 2013, 10:13 AM ET

Consumer Confidence Tumbled in March

ByKathleen Madigan

U.S. consumer confidence in March gave back almost all of its February rebound thanks to fiscal uncertainty, according to a report released Tuesday.

The Conference Board, a private research group, said its index of consumer confidence declined about 8 points to 59.7 in March from a revised 68.0 in February, first reported as 69.6.

Economists surveyed by Dow Jones Newswires had expected the index to fall, but only to 67.1.

Consumer expectations for economic activity over the next six months dropped to 60.9 from a revised 72.4, originally reported as 73.8.

The board’s present situation index, a gauge of consumers’ assessment of current economic conditions, slipped to 57.9 from a revised 61.4, first put at 63.3.

All three indexes are at their lowest levels since January.

Worries about federal government spending cuts–the so-called sequester–and changes in tax rates have whipsawed confidence over the past few months. Lynn Franco, director of economic indicators at the board, pointed out the March decline mirrored losses seen in December and January, another time of fiscal uncertainty.

“The recent sequester has created uncertainty regarding the economic outlook and as a result, consumers are less confident,” she said.

Consumers this month also turned more pessimistic in their views on the labor markets. That shift came despite a very solid report on February job growth and falling unemployment.

The board’s survey showed 9.4% of consumers now think jobs are “plentiful,” down from 10.1% in February. Another 36.2% think jobs are “hard to get,” little changed from the 36.9% who said that last month.

Consumers are equally downbeat about job prospects six months from now. Only 12.3% of consumers think there will be more jobs, down from 16.1% last month. And 26.6% think there will be fewer jobs, up from 22.1% last month.

When asked about incomes six months from now, 13.7% expect their earnings will increase, down from 15.8% saying that in February, and 18.0% expect a cut, down only slightly from 19.3% last month.

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