Gas prices weighing on consumer confidence

In a similar report released Thursday, the Bloomberg Consumer Comfort Index dropped to -44.5 in the period to March 6, from the prior week’s -39.7, which was close to the highest in almost three years.

Those who are unemployed, don’t have a full-time job or make less than $50,000 a year experienced the biggest drop in sentiment. 

Today’s survey showed a fall to 83.6 from 86.9 the prior month in the gauge of current conditions, which reflects whether consumers think it’s a good time to buy big-ticket items like cars.

Oil costs have surged with unrest in North Africa and the Middle East, pushing up prices at the pump to more than $3.50 a gallon, according to AAA.

The index of consumer expectations for six months from now, which provides a better gauge of how consumers are going to spend, dropped to 58.3 from 71.6, the largest drop since September 2005.

Consumers in the Michigan survey are expecting inflation to rise to a rate of 4.6 percent over the next 12 months, compared with 3.4 percent in the February report, the highest level since August 2008.