US consumer sentiment is a little cloudy
The measure of consumer confidence fell to 104.7 points in March. Experts had previously expected an increase.
With an inflation rate of 3.2%, inflation in the United States has recently been on the rise again.
Photograph: Angus Mordaunt/Bloomberg
US consumer sentiment deteriorated somewhat suddenly in March. The measure of consumer sentiment fell to 104.7 points after being revised down to 104.8 points in February, the Conference Board announced Tuesday in its survey. Experts polled by Reuters had expected an increase to 107.0 points. The institute's chief economist, Dana M. Peterson, explained that “consumers' assessment of the current situation improved in March, but they are more pessimistic about the future.”
Expectations for the next six months have fallen to the lowest level since October 2023. Consumers remain concerned about rising prices, says Peterson. The US economy is still running smoothly despite the central bank's high interest rate policy aimed at combating high inflation – also due to consumers' willingness to buy.
The Federal Reserve keeps the key interest rate in the range of 5.25 to 5.5%. In their updated interest rate forecasts for 2024, monetary authorities announced a total of three cuts. According to Fed Chairman Jerome Powell, on the way to changing interest rates, monetary authorities want to obtain a “higher degree of confidence” from incoming data that inflation is moving sustainably towards the two percent target. Inflation has recently been on the rise again with the inflation rate reaching 3.2%. Financial markets expect a shift in interest rates in the middle of the year.
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Reuters
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