This morning the The Conference Board announced the Consumer Confidence Index declined sharply dropping 9.5% in March, following an increase in February.
The Index now stands at 120.0 (1985=100), down from 132.6 in February. The Present Situation Index – based on consumers’ assessment of current business and labor market conditions – decreased from 169.3 to 167.7. The Expectations Index – based on consumers’ short-term outlook for income, business and labor market conditions – declined from 108.1 last month to 88.2 this month.
“Consumer confidence declined sharply in March due to a deterioration in the short-term outlook… The Present Situation Index remained relatively strong, reflective of an economy that was on solid footing, and prior to the recent surge in unemployment claims. However, the intensification of COVID-19 and extreme volatility in the financial markets have increased uncertainty about the outlook for the economy and jobs. March’s decline in confidence is more in line with a severe contraction – rather than a temporary shock – and further declines are sure to follow.”
Lynn Franco, Senior Director of Economic Indicators at The Conference Board.
Consumers are less optimistic about the short-term outlook. The percentage of consumers expecting business conditions to improve over the next six months decreased from 20.6 percent to 18.2 percent and those expecting business conditions will worsen increased from 7.2 percent to 14.9 percent.
Information for this briefing was found via The Conference Board . The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
