ZCZC
BCN-24
US-CONSUMER-CONFIDENCE-INDICATOR
US consumer confidence retreats in March
WASHINGTON, March 27, 2019 (BSS/AFP) – US consumer confidence retreated
sharply in March, confounding expectations that the rebound in the prior
month would continue, according to a private survey released Tuesday.
That decline, which included a more pessimistic view of current business
and employment conditions, was accompanied by a slightly less positive
outlook for the economy, according to The Conference Board survey.
The consumer confidence index fell seven points to 124.1, erasing much of
the 10-point gain in February and defying economists’ forecasts for a slight
uptick.
“Confidence has been somewhat volatile over the past few months, as
consumers have had to weather volatility in the financial markets, a partial
government shutdown and a very weak February jobs report,” said Lynn Franco
of The Conference Board.
“However, the overall trend in confidence has been softening since last
summer, pointing to a moderation in economic growth.”
That is in keeping with signals in the economic data that the US economy
has peaked amid a broader slowing in major countries, like China, which
prompted the Federal Reserve to pledge to hold off on any further interest
rate increases for now.
The confidence survey showed fewer consumers describe business conditions
as “good” and less see jobs as “plentiful,” and those same shifts were
reflected in the outlook for six months in the future.
However, Franco said even with the slowing, consumers “remain confident
that the economy will continue expanding in the near term.”
And Ian Shepherdson of Pantheon Macroeconomics said the dip in confidence
“looks like an anomaly.”
While “views of both business conditions and the labor market deteriorated
sharply … we doubt this marks the start of a sustained downward trend; a
rebound is more likely in April,” he said in a research note.
BSS/AFP/HR/1015