US consumer confidence ebbed in March as higher gasoline prices dampened the moods of car-reliant Americans, a report said on Tuesday. As gas pump costs soared, The Conference Board said its gauge of sentiment eased to 102.4 from a revised 104.4 in February. Analysts had looked for a dip to 103.0. The worsening confidence came as consumers felt gloomier about the labour market, despite signs of increased hiring in recent government data. The proportion of consumers saying jobs were "hard to get" in The Conference Board survey rose to 23.8 percent from 22.4 percent.
"We're still getting mixed readings on the labour market," said Gary Thayer, chief economist at A.G. Edwards and Sons.
The research group's expectations index measure declined to 93.7 from 96.1, while the present situation reading dipped to 115.6 from 116.8. Historically, the readings were still strong, the report said.
"Consumers are still quite confident," said Lynn Franco, research director at The Conference Board.
Consumer spending is the backbone of the US economy, accounting for two-thirds of overall activity, so deteriorating confidence is tracked as a possible precursor to softer growth.
In recent years, however, the correlation between confidence and actual retail sales has weakened, with consumers purchasing cars and homes even as they tell surveys that things are getting worse.
Indeed, The Conference Board survey's measure of intentions to buy new household appliances actually moved higher despite the overall deterioration in sentiment. Buying intentions had declined, however, in the key housing and auto sectors.