Economy
Consumer Confidence Ramps Higher, With Brighter Expectations Ahead
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It turns out that the recovery in the stock market and the end of the panic of the first six weeks of 2016 has led to a gain in consumer confidence. The Conference Board reported that consumer confidence rose to 96.2 in March.
Bloomberg was calling for the consensus estimate to be only 94.0, and Reuters mirrored Bloomberg on its consensus. The cutoff date for the preliminary results was March 17.
An issue that stands out is that the February initial read of 92.2 was revised higher to 94.0.
One thing that is also better than in past reports is that the expectations are looking better than the “today” readings. The Conference Board said that the Present Situation Index declined moderately from 115.0 in February to 113.5 in March. What gained handily was the Expectations Index, rising from 79.9 in February to 84.7 in March.
The Conference Board’s statement said:
Consumer confidence increased in March, after declining in February. Consumers’ assessment of current conditions posted a moderate decline, while expectations regarding the short-term turned more favorable as last month’s turmoil in the financial markets appears to have abated. On balance, consumers do not foresee the economy gaining any significant momentum in the near-term, nor do they see it worsening.
Consumers’ appraisal of current conditions eased in March:
Consumers’ appraisal of the labor market was mixed:
Consumers were more optimistic about the short-term outlook than in February:
Consumers’ outlook for the labor market for jobs and income was also more favorable:
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