Consumer Confidence: March Data Springs Forward

U.S. consumer confidence took a major leap forward in March, according to the latest data from The Conference Board. “Consumer confidence increased to its highest level since the onset of the pandemic in March 2020,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “Consumers’ assessment of current conditions and their short-term outlook improved significantly, an indication that economic growth is likely to strengthen further in the coming months. Consumers’ renewed optimism boosted their purchasing intentions for homes, autos and several big-ticket items. However, concerns of inflation in the short-term rose, most likely due to rising prices at the pump, and may temper spending intentions in the months ahead.”

Following a modest increase in February, the The Conference Board’s consumer confidence index surged in March to 109.7, up from 90.4 in February. The increase is the highest reading in a year. The present situation index, which is based on consumers’ assessment of current business and labor market conditions, and the expectations index, which is based on consumers’ short-term outlook for income, business and the labor market, also saw significant increases. The present situation index climbed from 89.6 to 110.0 month on month, while the expectations Index improved from 90.9 the prior month to 109.6 in March.