Economy

Poll: Consumer confidence improves slightly

by Vicki Needham - 03/31/11 3:35 PM ET

A federal government report could show on Friday that the economy added upward of 200,000 jobs in March.

Confidence among those making more than $100,000 a year dropped for the fourth straight week, the lowest level since October, likely on falling home values and a see-sawing stock market. The comfort reading moved from minus 14 last week to minus 13.8, according to the poll.

In a separate report Thursday, the manufacturing sector continued driving economic growth as business activity expanded faster than expected in March, according to the Institute for Supply Management-Chicago Inc. The business gauge fell to 70.6 this month from February’s 71.2 reading, which was the highest since July 1988.

Bloomberg’s index, which started in December 1985, fell to a record low of minus 54 in November 2008, with a high of 38 hit in January 2000. In 2010, the index averaged minus 45.7.

According to the index, the measure of personal finances increased to minus 1.1 from minus 5.5, as 50 percent of those asked reported positive views on their financial situation, up from 47 percent the previous week.

Last week was the second time the share has been at 50 percent or higher since January 2010.

Those saying it was a good time to buy needed products held at 23 percent, the poll showed.

Views on the improving economy, which has been hit with price pressures on gas and food, turned consumers’ views sour on economic conditions with the index falling to minus 86.5 last week, the lowest level since April 2009, from minus 86 the prior week. Only 7 percent of households held a positive view of the economy.

The S&P/Case-Shiller index of property values in 20 cities fell 3.1 percent from January 2010, with 18 of the 20 cities showing year-over-year price declines with some hitting new lows, according to a report released this week.

Foreclosures are expected to increase about 20 percent this year, while prices could hit rock bottom this spring, according to RealtyTrac, a group that follows the housing market.