CHICAGO — CONSUMER CONFIDENCE continues to grow, according to the latest Surveys of Consumers by Thomson Reuters and the University of Michigan. In the March survey, economists report higher confidence amid signs of growing employment, and increasing home prices also had consumers giving a thumbs up to the future.
“Although confidence dipped in early March, since the middle of the month consumers have expressed improved prospects for economic growth,” says Richard Curtin, Surveys of Consumers chief economist. “Two factors were responsible for the gains: Consumers discounted the administration’s warning about economic catastrophe following the cuts in federal spending, and consumers have renewed their expectations that job gains will accelerate in the months ahead.”
Curtin also says that while optimism like this has been seen before, recent gains look to be sustainable, with a lower unemployment rate and increases in consumer spending on the way.