By Ed Frankl
U.S. consumer confidence improved unexpectedly in March, reversing two months of declines, as economic expectations ticked up, despite high inflation and recent market turmoil.
Private research group The Conference Board said Tuesday that its consumer confidence index increased to 104.2 in March from an upwardly revised 103.4 in February.
Economists polled by The Wall Street Journal had expected confidence to weaken to 100.7.
The cutoff date for the survey was March 20, after the turbulence in the banking sector that included the demise of Silicon Valley Bank.
The improvement in confidence was driven by an uptick in the short-term outlook for income, business and labor-market conditions, The Conference Board said.
The expectations-specific index rose to 73.0 in March from 70.4 a month earlier, though that still lags the 80-point level that often signals a recession within the next year, it said.
The increase reflected an improved outlook for consumers under the age of 55 and for households earning $50,000 and over, said Ataman Ozyildirim, senior director at The Conference Board.
Meanwhile, the present situation index--which gauges consumers' assessments of current business and labor market conditions--decreased to 151.1 from 153.0, mainly due to a less favorable view of the availability of jobs.
The results showed expectations of inflation over the next 12 months remain high--at 6.3%--with purchasing plans for appliances softening but plans for car purchases slightly increasing, The Conference Board said.
Write to Ed Frankl at edward.frankl@wsj.com
(END) Dow Jones Newswires
03-28-23 1034ET
