Consumer Sentiment Rose More Than First Reported in March
U.S. consumer sentiment climbed in March by more than initially reported as views grew rosier about current economic conditions.
The University of Michigan’s final sentiment index climbed to 98.4 from the prior month’s 93.8, according to a report March 29. The median estimate of economists surveyed by Bloomberg was 97.8, the same as the preliminary reading released earlier this month. The gauge of current conditions was higher than the initial reading, while the expectations gauge was lower.
Plentiful jobs, rising wages and the Federal Reserve’s reticence toward raising interest rates are proving beneficial to consumer attitudes. The gain in consumer sentiment was concentrated in the bottom two-thirds of the income distribution, with the share citing improved finances at a record for this group.
The report contrasts with other recent data on consumer sentiment. The Conference Board’s gauge showed a decline this month, while the weekly Bloomberg Consumer Comfort Index has fallen to a five-week low.
Consumers anticipate slower gains in prices. Inflation expectations for the year ahead fell to 2.5%, the lowest reading since late 2017. The inflation rate over the next five to 10 years was also 2.5%, up from February. Fed policymakers closely monitor this part of the survey.
