10:18 AM EDT, 03/15/2024 (MT Newswires) -- The University of Michigan's preliminary consumer sentiment index declined slightly to 76.5 in March from 76.9 in February, compared with expectations for an increase to 77.1 in a survey compiled by Bloomberg as of 7:35 am ET.

The current conditions index remained at 79.4 in March, while the expectations reading fell to 74.6 from 75.2.

Michigan said that small improvements in personal finances were offset by less optimistic expectations for business conditions. Most of the consumers are uncertain about where the economy is heading, especially in the long term, Michigan said.

One-year inflation expectations remained at 3%, while five-year inflation expectations remained at 2.9%.

The twice-monthly Michigan Sentiment index measures consumer sentiment early in the current month (the preliminary estimate) and is then revised later in the month (the final estimate). The headline index is a combination of the current assessment and expectations for the near future.

An increase in the reading suggests consumers are more confident, a positive for stocks if that confidence translates into spending. Increased demand is usually inflationary, a negative for bonds.