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Consumer confidence rises in March

The Consumer Confidence Index rose to 52.5 in March (1985=100) compared with 46.4 in February, the Conference Board reported yesterday. The Present Situation Index increased to 26 in March from 21.7 in February, and the Expectations Index improved to 70.2 from 62.9 last month, according to the report.

"Consumer confidence, which had declined sharply in February, managed to recoup most of the loss in March,” said Lynn Franco, director of The Conference Board Consumer Research Center.  “However, despite this month’s increase, consumers continue to express concern about current business and labor market conditions. And, their outlook for the next six months is still rather pessimistic. Overall, consumer confidence levels have not changed significantly since last spring."

Consumers' assessment of current conditions was less negative in March than in February, with those claiming business conditions are "bad" decreasing to 42.8 percent in March compared with 45.1 percent in February, while those claiming conditions are "good" increasing to 8.6 percent in March compared with 6.8 percent in February. Consumers' appraisal of the job market also was less pessimistic, and their short-term outlook improved in March, according to the report.

Reprinted from C.A.R.