US Consumer Confidence: Things are trending back to normal – Wells Fargo
|Data released on Tuesday in the United States showed better-than-expected numbers. A consumer confidence index climbed to the highest level in a year. Analysts at Wells Fargo point out that as more people get the vaccine and life gradually returns to something reminiscent of normal, confidence is swiftly returning to where it was before the pandemic.
Key Quotes:
“U.S. consumer confidence shot up more that 12 points to 121.7, handily exceeding consensus expectations. The level for this bellwether for consumer spending stood at 132.6 in February 2020, just before COVID was designated as a pandemic the following month.”
“March economic indicators largely exceeded expectations; admittedly with some exceptions in the manufacturing sector where comparatively modest gains were a function of supply chain hiccups. The key question is the extent to which the robust consumer recovery will continue as stimulus checks no longer pad disposable income for households. On that score, this better-than-expected gain is encouraging.”
“Interestingly, the present situation measure catapulted 29.5 points to 139.6 from 110.1 previously. We see that largely reflecting the same vibe you can find at any newly reopened restaurant these days.”
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