U.S. consumer sentiment and inflation expectations were little changed in March, a survey showed on Friday. The University of Michigan’s preliminary reading on the overall index of consumer sentiment came in at 76.5 this month, compared to a final reading of 76.9 in February.
Quick Read
- Consumer optimism about the economy slightly declined in March, with the University of Michigan’s consumer sentiment index dropping to 76.5 from February’s 76.9.
- Despite the dip, expectations for future inflation remain low, suggesting continued slowdown in price increases.
- Consumer sentiment has been relatively stable since January, rebounding from the all-time low in June 2022, but still below pre-pandemic levels.
- The presidential race may be influenced by public perceptions of President Biden’s economic management.
- Recent inflation reports indicate prices are rising faster than the Federal Reserve’s 2% target for the second consecutive month.
- Many consumers are reserving judgment on the economy’s direction until after the November election.
- Expectations for one-year inflation remained at 3.0% in March, with the five-year outlook steady at 2.9%.
The Associated Press has the story:
US consumer sentiment ticks down slightly, but most expect inflation to ease further
Newslooks- WASHINGTON (AP) —
Consumers became slightly less optimistic about the economy this month, though they continue to expect inflation to cool further, a potential sign that price increases will keep slowing.
The University of Michigan’s consumer sentiment index, released Friday in a preliminary version, slipped to 76.5 in March, barely below February’s figure of 76.9. Americans’ outlook has essentially remained fixed since January, when it leapt higher. Sentiment is about halfway between its all-time low, reached in June 2022 when inflation peaked, and its pre-pandemic averages.
Americans’ outlook on the economy will likely have a significant effect on the presidential race, which will likely focus heavily on perceptions of President Joe Biden’s economic record.
Friday’s consumer sentiment figure follows inflation reports this week that showed that for a second straight month, prices rose at a pace faster than is consistent with the Federal Reserve’s 2% target.
“Consumers perceived few signals that the economy is currently improving or deteriorating,” said Surveys of Consumers Director Joanne Hsu in a statement. “Indeed, many are withholding judgment about the trajectory of the economy, particularly in the long term, pending the results of this November’s election.”
The survey’s reading of one-year inflation expectations were unchanged at 3.0% in March. The survey’s five-year inflation outlook held steady at 2.9% for the fourth straight month.
