Consumers' Short-Term Outlook: Cautious (article)

After reaching a five-and-a-half year high in February, consumer confidence took a downward turn this month, largely affected by concerns about the short-term outlook, according to yesterday's report from The Conference Board. The organization's Consumer Confidence Index declined to 107.2 (1985=100) in March, down from 111.2 in February.

Also this month, the Present Situation Index increased to 137.6, while the Expectations Index declined to 86.9.According to the report, consumers remain positive about current economic conditions, but recent changes have created apprehension about the months ahead.

"The recent turmoil in financial markets coupled with the run-up in gasoline prices may have contributed to consumers' heightened sense of uncertainty and concern. The direction of both components over the next few months bears watching to determine whether this decline is just a bump in the road or something more substantial," said Lynn Franco, director of The Conference Board Consumer Research Center.

**Taken from the California Association of Realtors Bulletin, dated March 28, 2007.