Consumer confidence drops as gas prices go up

Gasoline costs have continued to increase daily in the past several weeks, putting pressure on personal budgets that were already constrained by the economic downturn. 

The average price of gas at the pump climbed 14 cents to $3.51 a gallon in the week ended March 6, according to AAA.

Meanwhile, the labor market continued its seesaw as initial unemployment claims increased by 26,000 to 397,000 in the week ended March 5. 

The Bloomberg poll showed that the measure of personal finances fell to minus 3.7 last week, from a nearly two-year high of 2.4. 

Nearly half, 48 percent, of those asked were positive about their financial situation, down from 51 percent the previous week.

A gauge of views of the economy fell to minus 76.8 last week from minus 70.6 while the households positive view of the economy dropped to 12 percent from 15 percent the prior week.

Another part of the report, the index of the buying climate dropped to minus 53 from minus 50.9, the lowest in a year. 

Those saying it’s a good time to buy needed items dropped to 24 percent from 25 percent.