US consumer confidence falls for the first time in seven months

US consumer confidence declined in February, retreating from an 11-year high in the wake of rises in fuel costs and severe winter weather in parts of the country.

The University of Michigan final index of sentiment dropped for the first time in seven months, declining to 95.4 in February from the previous month's reading of 98.1, which was the highest reading since the start of 2004.

Economists surveyed by Bloomberg called for a reading of 94 after a preliminary reading of 93.6.

Sentiment fell 10.1 points among residents in the Northeast and 8.9 points in the Midwest, as both regions bore the brunt of severe winter conditions over the last month.

“It is hard not to attribute some of the diminished confidence to the harsh winter weather,” Richard Curtin, director of the Michigan Survey of Consumers, said in a statement.

However, “consumers continued to evaluate their financial situation as well as their future financial prospects at the most favourable levels since 2007,” he added.