Consumer sentiment climbs to 2 1/2-year high as inflation eases

By Jeffry Bartash

Consumer sentiment index rises to 79.4 in March

The numbers: The final reading of consumer sentiment in March rose to a 32-month high, as Americans expressed more confidence that inflation would ease and reduce the financial strain on households.

The second of two readings of the consumer-sentiment survey climbed to 79.4 from an initial 76.5, the University of Michigan said Thursday.

The index is at the highest level since July 2021, but it's still well below the prepandemic peak of 101.

Key details: A gauge that measures what consumers think about the current state of the economy rose to 82.5, also the highest reading since July 2021.

A measurement of expectations for the next six months moved up to a two-and-a-half-year high of 77.4.

Looking ahead: "Consumers exhibited confidence that inflation will continue to soften," said survey director Joanne Hsu. "Assessments and expectations of personal finances improved modestly from last month, as the perceived negative effects of high prices and expenses on living standards eased."

"Strong stock market performance this month supported sentiment gains only for those with the largest holdings, with little impact on the index," she said.

Market reaction: The Dow Jones Industrial Average and S&P 500 were mixed in Thursday trading.

-Jeffry Bartash

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03-28-24 1051ET

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