Consumer confidence continues to rebound in March, with the University of Michigan’s Consumer Sentiment Index rising to 76.2 at the end of the month. This is up from the 75.3 reported in February and the highest level the index has seen in over a year.
The increase in sentiment was driven entirely in an increase in the present conditions component of the index, which grew from 83.0 to 84.2. Future expectations fell from an index reading of 70.3 to 68.0.
Inflationary expectations for the next year rose substantially to 3.9% from 3.3% in January. Long term inflationary expectations remained relatively anchored, increasing by just 0.1% to 3.0%.