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The Conference Board Consumer Confidence Index Declines

Job market, income expectations are gloomier

The Conference Board
Wed, 03/30/2011 - 10:38
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The Conference Board Consumer Confidence Index, which had increased in February 2011, declined in March. The index now stands at 63.4 (1985 = 100), down from 72.0 in February. The Present Situation Index improved to 36.9 from 33.8. The Expectations Index decreased to 81.1 from 97.5 last month.

The monthly Consumer Confidence Survey, based on a probability-design random sample, is conducted for The Conference Board by The Nielsen Co., a global provider of information and analytics concerning what consumers buy and watch. The cutoff date for March’s preliminary results was March 16, 2011.

“The sharp decline in confidence was prompted by a sharp decline in expectations,” says Lynn Franco, director of The Conference Board’s Consumer Research Center. “Consumers’ inflation expectations rose significantly in March, and their income expectations soured, a combination that will likely impact spending decisions. On the other hand, consumers’ assessment of current conditions improved, indicating that while the short-term future may be uncertain, the economy continues to expand.”

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