US consumer confidence approaches three-year low

US consumer confidence dropped to a near three-year low in March as households worried about the economy's near-term outlook amid the coronavirus pandemic, which has upended life for Americans.
The survey from the Conference Board on Tuesday came in the wake of reports last week showing the number of Americans filing for unemployment benefits racing to a record 3.28 million in the week ending March 21, and business activity hitting an all-time low in March.
The country has ground to a sudden stop as authorities enforce strict measures to control the spread of the coronavirus, which causes a respiratory illness called COVID-19.
The United States has the highest number of confirmed COVID-19 cases, with more than 163,000 people infected. At least 3,017 people in the US have died from the illness, according to a Reuters tally.
The Federal Reserve has taken extraordinary measures and President Donald Trump last Friday signed a $2.2 trillion stimulus package to ease the blow on the economy, which economists believe is already in recession.
The Conference Board said its consumer confidence index decreased to a reading of 120.0 this month, the lowest since July 2017, from an upwardly revised 132.6 in February.
Economists polled by Reuters had forecast the index falling to 110.0 in March from the previously reported reading of 130.7 in February. The smaller-than-expected decline in confidence is likely because the cutoff date for the survey was March 19, before many states and local governments ordered residents to stay at home or shelter in place, and shuttered restaurants, bars and other social-gathering venues.
Other data on Tuesday showed manufacturing activity in the Midwest contracted further in March. The Chicago Purchasing Management Index, also known as the Chicago Business Barometer, dropped to a reading of 47.8 this month from 49.0 in February.
The index is jointly developed by MNI Indicators and ISM-Chicago. A reading below 50 means the Midwest manufacturing sector is contracting. News from Texas was very grim, likely reflecting the slump in crude oil prices because of the coronavirus and an oil price war between Saudi Arabia and Russia.
The Dallas Fed said its general business activity index fell over 85 points to a record -78.8 this month, while the company outlook index plunged 80 points to an all-time low reading of -75.3.
The revenue index, a key measure of state service sector conditions, plummeted to a historic -67.0 this month from a reading of 14.0 in February. There were also steep declines in employment and workweek measure, which also recorded negative readings.
Labor market strength was the economy's main pillar of support, through steady wage growth and consumer spending.
The percentage of consumers expecting an increase in income declined to 20.7% this month from 22.7% in February and the proportion anticipating a drop rose to 8.8% from 6.1%.
A third report on Tuesday showed the S&P CoreLogic Case-Shiller 20-metro-area house price index increased 3.1% from a year ago in January after rising 2.8% in December.