Friday, March 27, 2015

Consumer Sentiment Fell in March

Consumer sentiment fell in March according the University of Michigan survey, dropping 2.4 points from the previous month.

University of Michigan economist Richard Curtin noted that harsh weather combined with the slight uptick in gas prices contributed to the decline.

Most of the decline in confidence came from low income demographics, whereas middle and upper class households reported confidence gains. Curtin also noted that although interest rates are expected to rise this year, few consumers anticipate altering their purchasing behavior.

The current conditions and future expectations indices declined this month, falling by 1.9 points and 2.7 points, respectively.

Inflationary expectations for the next year increased significantly. Consumers now expect prices to be 3% higher one year from now, up from 2.5% in January.

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