U.S. Consumer Sentiment Turns Unexpectedly Brighter — University of Michigan
By Ed Frankl
U.S. consumer confidence rose unexpectedly to its highest level in almost three years, as consumers saw their personal finances improving as inflation cools further.
The final reading of The University of Michigan's consumer sentiment index was 79.4 in March, higher than the 76.9 in February, according to data released Thursday. The reading--the highest since July 2021--was stronger than expectations of economists polled by The Wall Street Journal, which expected it to remain at its preliminary, mid-month reading of 76.5.
"Critically, consumers exhibited confidence that inflation will continue to soften," Survey Director Joanne Hsu said.
Assessments and expectations of respondents' finances ticked up from last month, as the perceived negative effects of high prices and expenses on living standards eased, she added. A buoyant stock market also helped, albeit only for those with the largest holdings.
Although high compared with recent levels, sentiment remains essentially steady throughout the first quarter, and just shy of the midpoint between the prepandemic level of sentiment and the trough of June 2022, when it was 50.0.
"As the election season progresses and debates over economic policy become more salient for consumers, their outlook for the economy could become more volatile in the months ahead," Hsu noted.
Inflation expectations for the year ahead ticked down to 2.9% from 3.0% last month, while for the next five years, it inched lower to 2.8% from 2.9% in February, according to the data.
Write to Ed Frankl at edward.frankl@wsj.com
(END) Dow Jones Newswires
March 28, 2024 10:39 ET (14:39 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
What History Tells Us About the Fed’s Next Move
-
What’s Happening In the Markets This Week
-
Alphabet’s New Dividend: What Investors Need to Know
-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?
-
What’s the Difference Between the CPI and PCE Indexes?
-
5 Stocks to Buy That We Still Like After They’ve Run Up
-
Markets Brief: Stocks Are Starting to Look Cheap Again
-
AbbVie Earnings: Next-Generation Immunology Drugs Help Offset Humira Biosimilar Pressure
-
Exxon Earnings: Ignore Earnings Shortfall as Long-Term Growth and Improvement on Track
-
American Airlines Earnings: We See Costs Overshadowing Market Share This Year
-
Snap Earnings: Advertising Growth and Snapchat+ Drive Monetization
-
STMicro Earnings: We Still See an Attractive Margin of Safety Despite a Poor First-Half Forecast
-
Alphabet Shares Surge on Strong Earnings, Dividend Surprise
-
Microsoft Earnings: Firm Beats Forecasts on Strong AI and Cloud Demand
-
PG&E Earnings: Near-Term Regulatory Certainty Supports Industry-Leading Earnings Growth