The share of consumers who said jobs are currently plentiful fell to 4.4% from 4.9%. Those who said jobs are hard to get was little changed at 44.6% from the prior month.

The gauge of expectations for the next six months dropped to 81.1 from 97.5. Fewer Americans said they plan to purchase cars, homes and appliances in the next six months.

Employment, Income

The% of respondents expecting more jobs to become available in the next six months decreased to 19.9 from 21.2 the previous month. The proportion expecting their incomes to rise over the next six months declined to 15.3% from 17.4%.

"Consumers' inflation expectations rose significantly in March and their income expectations soured, a combination that will likely impact spending decisions," Lynn Franco, director of the Conference Board's consumer research center, said in a statement. "While the short-term future may be uncertain, the economy continues to expand."

Michaels Stores Inc., an arts-and-crafts retailer based in Irving, Texas, is among companies monitoring how consumers may respond to the higher costs for fuel and food.

"We think that the customer will be under pressure because of gasoline prices, food prices," John Menzer, chief executive officer, said on a conference call with investors on March 24. "We have to really look at value, value throughout our store."

Other Confidence Data

Today's report is consistent with other confidence data. The Bloomberg Consumer Comfort Index dropped in the week ended March 20 to the lowest level since August. The final reading of the Thomson Reuters/University of Michigan confidence index fell in March to the lowest level since November 2009.

The economy has added jobs for five consecutive months through February, when the unemployment rate fell to the lowest level since April 2009. A report due on April 1 may show March payrolls grew by 190,000, and the jobless rate held at 8.9%, according to the Bloomberg survey median.

Americans increased spending in February by 0.7%, more than forecast, as incomes climbed, figures from the Commerce Department showed yesterday.

More than half the gain last month was due to higher prices, indicating household spending will contribute less to the economy this quarter than in the last three months of 2010.