US consumers' optimism wanes

US consumer confidence fell more than forecast in February as the initial elation over a drop in fuel prices waned and Americans grew less optimistic about prospects for employment and income.

The Conference Board's sentiment index decreased to 96.4 from a revised January reading of 103.8, which was the highest since August 2007, the New York-based private research group said on Tuesday. The median forecast of 80 economists in the Bloomberg survey called for a decrease to 99.5.

A recent increase in gasoline costs from a six-year low may be curbing the enthusiasm of some households after a plunge in prices last year and a pickup in hiring helped confidence surge. Further improvement in the labor market that propels bigger pay raises will be needed to support sentiment through 2015.