Consumer Confidence Slides
Consumer confidence waned for the second month in a row in March, according to the Conference Board, as higher gas prices and the threat of inflation came into focus. Despite the dip, overall expectations remain high.
The Conference Board's consumer confidence index dipped to 102.4 for the month, down from 104.4 in February. Among the components of the index, the present situation index dipped to 115.6 from 116.8, and the expectations index declined to 93.7 from 96.1 last month.
"Consumers are still quite confident despite recent increases in unemployment claims and rising prices at the gas pump," said Lynn Franco, a spokesperson for the Conference Board, in a statement. "Their overall assessment of current economic conditions remains favorable and their short-term outlook suggests little change in the months ahead. In fact, while expectations have lost ground, consumers anticipate the job market will continue to improve, and easing employment concerns should help keep spending on track."
Based on its survey of 5,000 households, the Conference Board said those claiming business conditions are "good" edged up to 25.8% from 24.6%, but those claiming conditions are "bad" also increased slightly to 16% from 15.7%. The employment picture was also mixed. Consumers saying jobs are "hard to get" rose to 23.8% from 22.4%, while those claiming jobs are "plentiful" improved to 21.3% from 21.1%.
The outlook for the economy in general eased in March, with those anticipating business conditions to improve increasing to 19.2% from 17.9%, while those expecting business conditions to worsen increased to 8.2% from 7.8%. Meanwhile, the outlook for the job market improved, with those expecting fewer jobs to be available in the coming months declining to 15.8% from 16.5%. The number of respondents expecting more jobs was virtually unchanged at 15.1%, and the proportion of consumers anticipating their incomes to improve in the months ahead edged down to 16.7% from 18.7% last month.