Consumer Confidence Declines Sharply From February to March
he Conference Board Consumer Confidence Index, which had improved in February, declined in March. The index now stands at 59.7 (1985=100), down from 68.0 in February. The Present Situation Index decreased to 57.9 from 61.4. The Expectations Index declined to 60.9 from 72.4 last month. Consumers’ appraisal of current conditions declined in March. Those saying business conditions are “good” decreased to 16.0% from 17.6%, while those stating business conditions are “bad” increased to 29.3% from 28.2%.
Consumers’ assessment of the labor market was mixed. Those claiming jobs are “plentiful” decreased to 9.4% from 10.1%, but those claiming jobs are “hard to get” edged down to 36.2% from 36.9%. Consumers are once again pessimistic about the short-term outlook. Those expecting business conditions to improve over the next six months decreased to 14.4% from 18.0%, while those anticipating business conditions to worsen increased to 18.3% from 16.6%. Consumers’ outlook for the labor market was also less favorable.