Consumer Confidence Reaches Highest Point Since March 2020

The Conference Board Consumer Confidence Index has surged to new levels for the pandemic’s standards in March and now sits at 109.7, according to a press release. That’s up from 90.4 in February.

The release stated the Present Situations Index, which is based on the consumers’ assessment of how business and labor market conditions, has climbed from 89.6 to 110.

And the Expectations Index, which looks at the short-term outlook consumers have about the income, business and labor markets, improved as well, going from 90.9 to 109.6, according to the release.

The level of approval consumers have for the economy improved significantly in March, with more people saying they think business conditions are “good” right now and fewer saying they were “bad,” the release stated. The number of consumers thinking business and the job market are likely to improve in the coming months are also up.

“Consumers’ assessment of current conditions and their short-term outlook improved significantly, an indication that economic growth is likely to strengthen further in the coming months,” said Lynn Franco, senior director of Economic Indicators at The Conference Board. “Consumers’ renewed optimism boosted their purchasing intentions for homes, autos and several big-ticket items. However, concerns of inflation in the short term rose, most likely due to rising prices at the pump, and may temper spending intentions in the months ahead.”

Analysts have considered how consumers would spend their third round of stimulus checks, and they think many people are likely to save, invest or pay off debts. Only 15 percent of respondents to a survey about the first round of stimulus last year reported spending the money. And even then, only about 40 percent of the money was spent.