Consumer Sentiment Index Continues Strong

There's plenty of complaints about low wages and plenty of confusion surrounding the presidential campaign but they're not dragging down consumer spirits. The consumer sentiment index came in at a final 91.0 in March, this is up 1 point from mid-month and implies a roughly 92.0 pace over the last two weeks of the month. The final readings for February and January were 91.7 and 92.0.

Both components, expectations and current conditions, show little change in March, at 81.5 for the former and 105.6 for the latter. A minor plus in the report is traction in 5-year inflation expectations, up 2 tenths from February to 2.7 percent. But 1-year expectations, also at 2.7 percent, are unchanged.

Personal spending posted on Monday was a big disappointment, pointing to slow growth for the consumer sector during the first quarter. But this report, together with Tuesday's consumer confidence report, do hint at a bounce back.

Recent History Of This Indicator:
The Econoday consensus is not pointing to a month-end rebound for the consumer sentiment index which in the preliminary report for March fell back nearly 2 points to 90.0 for the least optimistic reading since October. Inflation expectations in the mid-month report rebounded, getting a boost from this month's rise in pump prices. Readings on consumer spirits have remained solid but have been coming down this year.