Business

US consumer confidence up slightly in March

Consumer sentiment cut by rising prices, Russian war in Ukraine

US consumer confidence rebounded in March after falling for two consecutive months, according to data released Tuesday by the Conference Board.

The Consumer Confidence Index that predicts consumer spending and economic activity, rose to 107.2, up from 105.7 in February.

Lynn Franco, senior director of economic indicators at the Conference Board, said while data suggest economic growth continued in the first quarter of this year, consumer sentiment was cut by rising prices and the Russian war in Ukraine.

“Nevertheless, consumer confidence continues to be supported by strong employment growth and thus has been holding up remarkably well despite geopolitical uncertainties and expectations for inflation over the next 12 months reaching 7.9% an all-time high,” said Franco. “However, these headwinds are expected to persist in the short term and may potentially dampen confidence as well as cool spending further in the months ahead.”

The Present Situation Index, based on consumers’ assessment of current business and labor market conditions, rose to 153 in January, from 143 in the previous month.

The Expectations Index, based on consumers’ short-term outlook for income, business, and labor market conditions, declined to 76.6 from 80.8.

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