U.S. consumer sentiment fell to 69.5 in March 2008 from 70.8 in February 2008, as measured by the Reuters/University of Michigan Consumer Sentiment Index. (pdf)

Economists surveyed by Bloomberg News had expected the index to fall to 70.0 in March 2008.

Meanwhile, the current conditions index rose to 84.2 from 83.8 in February 2008. The expectations index declined to 60.1 from 62.4.

The most recent survey found that consumers were nearly unanimous in the opinion that the economy had already slipped into a recession, Reuters/University of Michigan survey research indicated. Consumers have adopted much more cautious spending plans, shifting more toward repaying debts and rebuilding their savings, the research indicated.

Further, a recession has occurred whenever the sentiment index declined as much as it has fallen during the past year, according to Richard Curtin, Director of the Reuters/University of Michigan Surveys of Consumers.

Economic Analysis: Economists tend to place less emphasis on the sentiment barometers, preferring to emphasize the 'iron and steel data' of U.S. economy metrics: production, corporate profits, housing starts, job growth, etc., which provide more-tangible indicators of economic activity. That said, the latest Reuters/UMich. consumer sentiment data is not on a positive track. Consumers, weighed down by rising gasoline and heating oil prices, the housing slump, and sluggish job growth, are understandably downbeat about the economy and its immediate prospects.