US UoM Consumer Sentiment Index is seen declining to 57.9 in March

Consumer confidence in the US declined markedly in early March.
One-year inflation expectation edged higher to 4.9%.

Pablo Piovano FXStreet

US Consumer Sentiment took a dip in early March, according to the preliminary reading of the University of Michigan’s Consumer Sentiment Index. The gauge slipped from 64.7 in February to 57.9, missing the market’s forecast.

Breaking it down further, the Current Conditions Index edged down from 65.7 to 63.5, while the Consumer Expectations Index moved from 64.0 to 54.2.

On the inflation front, the survey revealed a noticeable uptick in one-year inflation expectations—from 4.3% to 4.9%—and the five-year outlook rose from 3.5% to 3.9%.

Market reaction

The release of the indicator did not move the Greenback’s dial, with the US Dollar Index (DXY) resuming its downtrend after two-daily upticks in a row and revisiting the 103.80 region, down modestly for the day.

(This story was corrected on March 14 at 14:11 GMT to say that consumer confidence declined markedly in early March, not October.)

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.

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