Consumer Confidence Falls From 3-Year High

Consumer confidence fell in March from a three-year high, according to the Thomson Reuters/University of Michigan consumer sentiment index released Friday.

The final index for the month fell to a reading of 67.5, from 77.5 in February, which had been the highest reading in three years. A preliminary reading two weeks ago showed a reading of 68.2.

The downturn was due in part to higher gasoline prices and concerns over the effects on the world economy of Japan’s earthquake and tsunami, Bloomberg reported.

The reading was close to economists’ forecasts of a 68 reading, Bloomberg said.

The index averaged a reading of 89 in the five years leading up to the recession at the end of 2007.

An improvement in confidence may increase consumer spending, which accounts for 70% of the economy.