US Feb consumer confidence down

New York

US consumer confidence fell more than expected in February, pulling back from a multi-year high, according to a private sector report released on Tuesday.

The Conference Board, an industry group, said its index of consumer attitudes fell to 96.4 from an upwardly revised 103.8 in January.

The February reading was the lowest for the index since September, and was below economist expectations for a reading of 99.6, according to a Reuters poll.

The median forecast of 80 economists in a Bloomberg survey called for a decrease in the measure to 99.5, with estimates ranging from 95 to 109.

The January figure was originally reported as 102.9 and was the highest since August 2007.

The Conference Board's gauge averaged 96.9 during the last expansion and 53.7 during the recession that ended in June 2009.

Another report on Tuesday showed that home prices in 20 US cities appreciated at a faster pace in the year ended in December, a sign that a limited supply is forcing up property values.

The S&P/Case-Shiller index increased 4.5 per cent from December 2013, after rising 4.3 per cent in the year ended in November. Nationally, prices rose 4.6 per cent year-over-year in December.

Moderate price gains bode well for home owners, improving their financial picture and boosting confidence. At the same time, a surge that outpaces wage growth and consumer price inflation could have undesired effects, like making homes unaffordable to young or first-time buyers and pushing them out of the market.

Meanwhile, the US services sector expanded in February at its fastest pace since October, with businesses reporting customers boosting orders because of improving economic conditions, an industry report showed on Tuesday.

Financial data firm Markit said its preliminary, or "flash", reading of its Purchasing Managers Index for the service sector rose to 57.0 in February from a final reading of 54.2 in January.

The report far outpaced forecasts, which called for a February reading of 54.0, according to a Reuters survey of economists. A reading over 50 signals expansion in economic activity.

Markit's reading of new business at service companies in February surged to 56.7 from 51.7 in January, which was the lowest reading in the history of the Markit services sector series dating to October 2009.

"While parts of the East Coast have struggled in the face of adverse weather, other regions basked in unusually warm temperatures, boosting business above seasonal norms," said Chris Williamson, chief economist at Markit, in a statement."Activity levels surged higher and inflows of new business boomed as a result."

Markit last week said its flash US Manufacturing Purchasing Managers Index rose to 54.3 in February, up from January's final reading of 53.9.

"Alongside the upturn signalled by the sister 'flash' manufacturing PMI survey, the improved performance of the service sector in February means the economy looks to be enjoying yet another spell of robust growth in the first quarter," Mr Williamson said.

The surveys portray US gross domestic product as growing at 3 per cent or more on an annualized basis, Mr Williamson said.

The service index's employment component also rose in February and remained above 50, the level which separates expansion from contraction.

Markit's seasonally-adjusted flash US Composite PMI Output Index rose to 56.8 in February, its best monthly reading since October, from 54.4 in January. REUTERS, BLOOMBERG