Consumers confident in March that inflation will soften, U. Michigan says

28th Mar 2024 12:31

(Sharecast News) - Consumer confidence in the U.S. improved slightly in March amid lessened concern about inflation, the results of a closely-followed survey revealed.

The University of Michigan's consumer confidence index rose from 76.9 in February to 79.4 for March (Preliminary: 76.5).

Commenting on the results, survey director Joanne Hsu noted that March's improvement was "well within" the margin of error.

Nonetheless, consumers were confident that inflation would continue to fall back and the perceived negative impact from higher prices on living standards eased.

Hsu added that: "As the election season progresses and debates over economic policy become more salient for consumers, their outlook for the economy could become more volatile in the months ahead."

Inflation expectations one year out and for the long-run both improved by one tenth of a percentage point versus February to 2.9% and 2.8%, respectively.

In the two years prior to the pandemic inflation expectations for the short and long-run had moved within ranges of between 2.3-3.0% and 2.2-2.6%.