The consumer confidence index increased to 109.7 in March from 90.4 in February, which beat the economists' forecast at 96.9
Consumers’ assessment of short term outlook on salaries, employment rate and commercial activities increased , with an optimism view on the domestic consumption market
MM Analysis
The consumer confidence index reached 109.7 in March, which echo with the increased number of University of Michigan Consumer Sentiment Survey. Consumer's optimism derived from 3 main factors.
1. Increased vaccinations, which indicates a rebound on commercial activities
2. Labor market on the mend, i.e. decreasing Unemployment Insurance Weekly Claims, increasing US Non-farm Payrolls, which would boost the retail and personal consumption growth
3. Transfer income from the American Rescue Plan
In conclusion, strong consumption confidence and high saving rate would provide a strong support on economic recover, pushing up the US GDP
Consumers’ assessment of short term outlook on salaries, employment rate and commercial activities increased , with an optimism view on the domestic consumption market
MM Analysis
The consumer confidence index reached 109.7 in March, which echo with the increased number of University of Michigan Consumer Sentiment Survey. Consumer's optimism derived from 3 main factors.
1. Increased vaccinations, which indicates a rebound on commercial activities
2. Labor market on the mend, i.e. decreasing Unemployment Insurance Weekly Claims, increasing US Non-farm Payrolls, which would boost the retail and personal consumption growth
3. Transfer income from the American Rescue Plan
In conclusion, strong consumption confidence and high saving rate would provide a strong support on economic recover, pushing up the US GDP