Consumer Confidence Eases But Remains Very Strong in March

The Conference Board said the Consumer Confidence Index eased slightly in March but remained at a very strong 127.7 (1985=100), down from 130.0 in February. The Present Situation Index ticked down slightly from 161.2 to 159.9, while the Expectations Index fell from 109.2 last month to 106.2 this month.

“Consumer confidence declined moderately in March after reaching an 18-year high in February,” said Lynn Franco, Director of Economic Indicators at The Conference Board. “Consumers’ assessment of current conditions declined slightly, with business conditions the primary reason for the moderation.”

Worth noting, the cutoff date for these preliminary results was March 15.

For current conditions, the percentage saying business conditions are “good” increased from 36.5% to 37.9%. But those claiming business conditions are “bad” also increased, from 11.3% to 13.4%. Those claiming jobs are “plentiful” increased from 39.1% to 39.9%, while those claiming jobs are “hard to get” edged down from 15.1% to 14.9%.

This bodes very well for employment, as it mirrors other data indicating demand for labor is very strong.

“Consumers’ short-term expectations also declined, including their outlook for the stock market, but overall expectations remain quite favorable,” Ms. Franco added. “Despite the modest retreat in confidence, index levels remain historically high and suggest further strong growth in the months ahead.”

The percentage of consumers anticipating business conditions will improve over the next 6 months fell from 25.0% to 23.0%, while those expecting business conditions will worsen increased from 9.4% to 9.8%.

The proportion expecting more jobs in the months ahead fell from 22.4% to 19.1%, while those thinking there will be fewer jobs slightly rose from 12.4% to 12.6%. Regarding their short-term income prospects, the percentage of consumers expecting an improvement decreased from 23.5% to 22.0%.

However, the proportion expecting a decrease also declined, from 8.6% to 7.2%.