By Freddie Mooche

(AXcess News) Washington - An early report on consumer sentiment by the University of Michigan in March shows US consumers remain cautious towards the economy, jobs and what the government is doing about it.

The University's consumer sentiment index in March dropped 1.1 basis points to 72.5 from February's 73.6 level, though still well above the year-ago consumer confidence level of 57.3 when the US economy was deep in the grip of the worst recession since the Great Depression of the 1030s.

For the last six months, the University of Michigan's consumer sentiment index has averaged slightly less than March figures, implying that Americans have remained in a wait-and-see curve, though the unemployment levels during that time have increased and housing remains down.

February data from the US Department of Labor showed one of the lowest payroll losses since the recession began, though winter conditions cloud those figures, critics argue.   The nation's unemployment rate remains at 10% and those workers whose benefits would have been exhausted by now had it not been for Congress enacting another round of unemployment funding for state programs are still unemployed - and the number appears to be growing - as are consumer concerns over what the Obama administration is going to do about it.

While the President is on a week-long tour of American cities promoting his healthcare reform agenda, lawmakers on both sides of the isle are beginning to say that Obama should be paying more attention to the job market and turning the US economy around - that healthcare reform can wait.  At the same time, Obama is saying its Congress who's turning their backs on Americans for not voting on healthcare reform while he attacked insurers in a two-pronged pitch aimed more at his political party constituants.

As Capitol Hill goes back and forth over which problem to fix first, Americans remain concerned about housing and what will happen to home values this year.  Standard & Poor's suggests a huge wave of foreclosures lies ahead and that as a result, the market is heading towards another wave of homes coming onto the marketplace that will extend a glut of properties still waiting to be purchased.

While Obama now wags his finger at Congress for stalling healthcare reform, Democrats say his attention to jobs at this juncture is more important.  Yet just a few months ago it was President Obama who said jobs [where] a 'top priority' of his administration.

As consumer confidence lags many families are finding themselves seeking federal assistance for the first time in their lives.  The number of families applying for food stamps has increased.

A study released by Feeding America in early February shows the majority of people who seek emergency food assistance are working. They are underemployed or don't have high enough wages to live on. More than a third of client households have at least one employed adult.

"The top 10 percent have a very low unemployment," said Jim Tillotson, a nutrition science professor at Tufts University. "It's the bottom that gets shut out. They're working less, and they're hurting."

Professor Peter Morici at the Smith School of Business, University of Maryland, and former Chief Economist at the U.S. International Trade Commission, put things another way saying, "Most economists where expecting figures about like what the University of Michigan's survey revealed."  Professor Morici stated that the Survey is "closely watched" and its March figures are about on par with how the economy is performing.  "Some are making money in stocks while others aren't," said Morici.  "So the state of the US economy can be good for some and bad for others."