Following a sharp fall in February, consumer confidence improved in March, according to the latest survey released by The Conference Board, a private research firm. The Consumer Confidence Index climbed to 52.5 last month, up from 46.4 in February, demonstrating a cautious increase in optimism regarding the economy. “Consumer confidence managed to recoup most of the loss in March,” says Lynn Franco, director of consumer research at The Conference Board.
According to data, consumers have an improving short-term view of the business climate and labor market. Among respondents in March, 18.3% expect economic conditions to become better over the next six months, up from 16.1% in February. In March, those claiming business conditions are good rose to 8.6%, increasing from 6.8% a month earlier. Additionally, 14.6% of respondents anticipate more jobs will soon become available, a modest jump from 13.2% in February.
Separately, the U.S. Commerce Department released mixed economic news this week, announcing consumer spending rose slightly in February while personal income remained flat. Disposable income was also unchanged in February, and with no income growth, national savings slipped to its lowest level since October 2008, according to government reports. In a reversal from earlier in the year, payrolls of goods-producing industries dropped $3.5 billion in February, with manufacturing slipping $1.4 billion following a $5 billion gain in January.
Further obscuring an already unsettled long-term outlook for many consumers, the private sector cut an estimated 23,000 jobs in March. However, analysts believe overall U.S. employment numbers could actually rebound in March, buoyed by temporary hiring related to the 2010 Census. A full Bureau of Labor Statistics report will be released tomorrow.
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