Having reached a 15-year peak on February, consumer confidence reached a new peak in March, now standing at its highest level in 16 years.
The index's current reading is 125.6, up from 116.1 in February.
“Consumer confidence increased sharply in March to its highest level since December 2000 (Index, 128.6),” said Lynn Franco, director of economic indicators at The Conference Board.
“Consumers’ assessment of current business and labor market conditions improved considerably," she added. "Consumers also expressed much greater optimism regarding the short-term outlook for business, jobs and personal income prospects. Thus, consumers feel current economic conditions have improved over the recent period, and their renewed optimism suggests the possibility of some upside to the prospects for economic growth in the coming months.”
The Present Situation Index also rose from 134.4 to 143.1. The percentage saying business conditions are “good” increased from 28.3% to 32.2%, while those saying business conditions are “bad” decreased from 13.4% to 12.9%. The percentage of consumers stating jobs are “plentiful” rose from 26.9% to 31.7%, while those claiming jobs are “hard to get” decreased moderately, from 19.9% to 19.5%.
The Expectations Index reflected a positive change in near-term expectations as well, rising from 103.9 to 113.8.
The percentage of consumers expecting business conditions to improve over the next six months increased from 23.9% to 27.1%, while those expecting business conditions to worsen declined from 10.5% to 8.4%.
Meanwhile, the proportion expecting more jobs in the months ahead increased from 20.9% to 24.8%, while those anticipating fewer jobs declined from 13.6% to 12.2%. The percentage of consumers expecting their incomes to increase improved from 19.2% to 21.5%, while the proportion expecting a decrease declined from 8.1% to 7.0%.