Consumer Confidence Index Eases Back Slightly

The consumer confidence index, at 127.7, eased back slightly in March but remains very strong especially the assessment of the labor market where only 14.9 percent say jobs are hard to get. This is closely watched by forecasters and the reading, which is down 2 tenths from an already strong February, will firm expectations for yet another favorable monthly employment report.

This year's tax cut has been offsetting trouble in the stock market and continues to support confidence readings. Yet confidence in stocks is eroding with only 35.4 percent of the sample seeing year-ahead gains for the market vs 40.1 percent in February and a peak of 51.0 percent in January when the sell-off first hit.

Other readings include a downtick in inflation expectations, now at 4.6 percent after having shown hints of life in prior months. Buying plans are soft especially for homes which are at only 5.5 percent, down a couple of percentage points over the past couple of months which hints at slowing ahead for the housing market.

Today's report is less upbeat than prior months but not the assessment of the labor market which is a central positive that does overshadow the spots of softness.