Consumer confidence dips in March

Volatility in the financial markets is taking a bite out of the confidence of U.S. consumers, who are also feeling less optimistic about the job outlook.

The Conference Board reported that its consumer confidence index fell to 124.1 in March from 131.4 in February. The index had risen in February amid a rebound in the stock market and an end to the partial shutdown of the federal government.

The present situation Index,  based on consumers' assessment of current business and labor market conditions, declined to 160.6 from 172.8 last month. The expectations index, based on consumers' short-term outlook for income, business and labor market conditions, decreased to 99.8 from 103.8 last month.

“Confidence has been somewhat volatile over the past few months, as consumers have had to weather volatility in the financial markets, a partial government shutdown and a very weak February jobs report,” said Lynn Franco, senior director of economic indicators at The Conference Board. “Despite these dynamics, consumers remain confident that the economy will continue expanding in the near term. However, the overall trend in confidence has been softening since last summer, pointing to a moderation in economic growth."

Consumers' assessment of current conditions declined in March. The percentage of consumers stating business conditions are "good" decreased from 40.6% to 33.4%. Those saying business conditions are "bad" increased from 11.1% to 13.6%.

Consumers' optimism about the short-term future moderated in March. The percentage of consumers expecting business conditions will improve over the next six months declined from 19.6% to 17.7%. Those expecting business conditions will worsen remained relatively flat, 9.3% versus 9.2% last month.

Consumers' assessment of the labor market was less upbeat. Those stating jobs are "plentiful" decreased to 42% from 45.7%. Those claiming jobs are "hard to get" increased to 13.7% from 11.7%.

The index had climbed in February amid a rebound in the stock market after Christmas and an end to the partial shutdown of the federal government, as well as signs of progress toward ending the trade standoff between the U.S. and China.