US Consumer Confidence improves further: not just a post-election bounce - Wells Fargo
|Analysts from Wells Fargo, point out that Consumer Confidence strengthened further in March, to the highest level since December 2000.
Key Quotes:
“Consumer confidence once again significantly topped expectations. The overall index surged 9.5 points in March and data for February were also revised 1.3 points higher. The surge in the Consumer Confidence Index reported since the election is hard to dismiss as merely a post-election bounce.”
“Overall consumer confidence has risen 24.8 points since October and coincides with improvement in other consumer surveys, as well as surveys of manufacturers, small businesses, homebuilders and corporate CFOs.”
“The cutoff date for the preliminary survey was March 16, which preceded the demise of the proposed revision of the Affordable Care Act and ensuing stock market pullback surrounding it. We would expect to see some pullback in coming months, particularly if expectations for tax cuts are scaled back. “
“The improvement in consumer sentiment likely reflects a legitimate improvement in business conditions. Consumers’ assessment of current economic conditions rose 8.7 points to 143.1, largely on the strength of a surge in the proportion of consumers stating that they believe that jobs are plentiful and a coinciding drop in the proportion stating jobs are not so plentiful.”
“Expectations for future economic conditions jumped 9.9 points to 113.8. The largest improvement came in the proportion of consumers expecting more jobs to be created over the next six months.”
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