WASHINGTON (MarketWatch) -- The University of Michigan-Thomson Reuters consumer-sentiment gauge dropped to a preliminary March reading of 71.8 -- the lowest level since December 2011 -- from a final February reading of 77.6, reports said Friday. Economists polled by MarketWatch had expected a preliminary March reading of 78, with rising stock prices and good jobs news more than offseting higher payroll taxes. However, consumers also faced uncertainty from effects of federal spending cuts. The sentiment gauge, which covers how consumers view their personal finances as well as business and buying conditions, averaged about 87 in the year before the start of the most recent recession. Economists watch sentiment data to get a feel for the direction of consumer spending.
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Treasurys gain after consumer sentiment surprise