US CB Consumer Confidence Index dropped to 92.9 in March
- US CB Consumer Confidence Index declined further in March.
- The US Dollar Index trades on the defensive near recent lows.
US consumer sentiment extended its decline in March, as the Conference Board’s Consumer Confidence Index fell from 98.3 to 92.9—its weakest reading since February 2021.
Views of current business and job market conditions also slipped, with the Present Situation Index declining by 3.6 points to 134.5. Even more concerning, the Expectations Index—which gauges short-term outlooks for income, business, and employment—tumbled 9.6 points to 65.2, the lowest level in the last 12 years and below the 80 threshold, which is usually associated with an incoming recession.
Stephanie Guichard, Senior Economist, Global Indicators at The Conference Board, reported that consumer confidence declined for the fourth consecutive month in March, falling below the narrow range that had prevailed since 2022. She noted that, among the Index’s five components, only consumers’ assessment of present labor market conditions improved, albeit slightly. Guichard added that views of current business conditions weakened to nearly neutral and that consumers’ expectations were particularly gloomy, with pessimism about future business conditions deepening and confidence in future employment prospects falling to a 12-year low.
Market reaction
The US Dollar (USD) is coming under renewed selling pressure, causing the US Dollar Index (DXY) to challenge the key 104.00 support on Tuesday, halting a four-day positive streak.
Author
Pablo Piovano
FXStreet
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.
