United States: Consumer confidence rises to a one-year high in March
March 30, 2021
Consumer confidence came in at 109.7 in March, up from February's 90.4. As a result, the index jumped above the 100-threshold—for the first time since October 2020—indicating optimism among consumers.
The uptick came on the back of a strong increase in consumers’ assessment of current labor market and economic conditions, likely buoyed by the ongoing rollout out of an effective Covid-19 vaccine across the country. Moreover, consumers’ outlook on future economic and labor market conditions also surged in March.
Lynn Franco, senior director of economic indicators at the Conference Board, noted:
“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.”
Author: Steven Burke, Economist