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Consumer Confidence in U.S. Rose More Than Forecast in March

Crabtownboy

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Consumer confidence rebounded more than forecast in March as American households grew upbeat about prospects for the labor market and economy.

The Conference Board’s sentiment index rose to 96.2 this month from a revised 94 reading in February that was higher than previously reported, the New York-based private research group said Tuesday. The median forecast in a Bloomberg survey called for an increase to 94. The survey reflected responses received through March 17.

Employment opportunities and a rebound in stock prices boosted optimism enough this month to overcome rising gasoline prices. Greater wage gains would probably help propel confidence further and make consumers more comfortable about boosting their spending after a weak start to the year.



“Things are relatively steady,” said Stephen Stanley, chief economist at Amherst Pierpont Securities LLC in New York. “There’s no big break in either direction for the consumer sector right now and I would say that’s a good thing, because the consumer has been broadly healthy.”
 

Revmitchell

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The Tuesday report is at odds with the University of Michigan’s preliminary sentiment index which fell to a five-month low in the first half of March as rising gasoline prices tempered Americans’ views.

Recent data have shown consumers are hesitant about loosening the purse strings. Personal spending rose 0.1 percent for a third month in February and the prior month’s advance was revised down as Americans socked away more of their incomes, a Commerce Department report showed Monday.

Weaker sales so far in the first quarter indicate spending will do little to spur growth. The U.S. economy expanded at a 1.4 percent annualized rate in the final three months of 2015.

http://www.bloomberg.com/news/artic...dence-index-in-u-s-increased-to-96-2-in-march
 
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