The final
reading for the March Reuters/Michigan index of consumer sentiment came in at 79.4
compared to the flash reading of 76.5 and the February final reading of 76.9. This
was the highest reading since July 2021 (81.2).
Economists
had predicted the indicator to be unrevised at 76.5.
The details of
the latest Surveys of Consumers of the University of Michigan revealed that the
index of current economic conditions jumped 3.9 per cent m-o-m to 82.5 this
month while the index of consumer expectations climbed by 2.9 per cent m-o-m
to 77.4.
The report also
revealed that the year-ahead inflation expectations decreased from 3.0 per cent in February to 2.9 per cent in March,
compared
to the preliminary reading of 3.0 per cent. Meanwhile, the 5-year inflation
expectations declined
from 2.9 per cent in February to 2.8 per cent, compared to the preliminary estimates of 2.9 per
cent. This marked the lowest reading since September 2023 (2.8 per cent).
Commenting on
the latest results, Joanne Hsu, Surveys of Consumers Director, noted that
despite the March increase sentiment was essentially unchanged throughout the
first quarter of 2024, remaining just shy of the midpoint between the
pre-pandemic level of sentiment and the historic trough from June 2022. “This
stability reflects a perception among consumers that the economy has been
holding steady in its current state,” she added. “As the election season
progresses and debates over economic policy become more salient for consumers,
their outlook for the economy could become more volatile in the months ahead.”