Consumer confidence drops as gas prices rise

In a separate report, the consumer price index increased by 0.4 in February, created by a 6 percent rise in gas prices, the Labor Department said Friday. 

The average cost of a gallon of regular gasoline is up to $3.83, an increase of 32 cents from a month ago, according to AAA.

Still, outside of energy and food prices, consumer costs or “core” prices were up just 0.1 percent. After 19 months of increases, food prices held steady. 

The survey’s index of current conditions, which reflects whether consumers think it is a good time to buy such big-ticket items as cars, improved to 84.2 percent from 83 percent last month.

Looking ahead six months — which gives a better indication of whether consumers will pick up spending — the index fell to 68 percent from 70.3 percent, which was the highest level in a year. 

Consumer spending, which has been on the rise, represents 70 percent of economic activity and is a key driver in the economic recovery.