The University of Michigan's March reading of consumer sentiment at 92.6 about matched Consensus expectations, ended the month down from the preliminary indication of 92.9 and was 1.6% lower than February.

Sentiment has fallen in each of the last three months and is off 10.8% from the January '04 peak. During the last ten years there has been a 75% (inverse) correlation between the level of consumer sentiment and the unemployment rate.

The reading of current conditions fell for the second month. The 1.1% decline reflected a sharp decline in sentiment regarding current conditions for buying vehicles.

Consumer expectations slipped for the third consecutive month due to a drop in expected business conditions in six months. This reading is down 27.3% from the January '04 high.

The University of Michigan survey is not seasonally adjusted.The mid-month survey is based on telephone interviews with 250 households nationwide on personal finances and business and buying conditions. The survey is expanded to a total of 500 interviews at month end.