The Conference Board announced on Tuesday its U.S. consumer confidence gauge fell 12.6 points to 120.0 in March from a 132.6 in February. That was the lowest level since July 2017.

Economists had expected consumer confidence to come in at 110.0.

February's consumer confidence reading was revised up from originally estimated 130.7.

The survey showed that the expectations index decreased from 108.1 last month to 88.2 this month, while the present situation index fell from 169.3 to 167.7.

"Consumer confidence declined sharply in March due to a deterioration in the short-term outlook," noted Lynn Franco, Senior Director of Economic Indicators at The Conference Board. "The Present Situation Index remained relatively strong, reflective of an economy that was on solid footing, and prior to the recent surge in unemployment claims. However, the intensification of COVID-19 and extreme volatility in the financial markets have increased uncertainty about the outlook for the economy and jobs. March's decline in confidence is more in line with a severe contraction - rather than a temporary shock - and further declines are sure to follow."