US consumer confidence rebounds in March

Bloomberg

US consumer confidence edged up in March, suggesting solid job growth offset Americans’ concerns over decades-high inflation that poses a risk to spending and growth.
The Conference Board’s index increased to 107.2 from a downwardly revised 105.7 reading in February, which was the lowest in a year, according to the group’s report Tuesday. The median forecast in a Bloomberg survey of economists called for a reading of 107.
Even though confidence edged up, Americans are facing the highest inflation since 1982, which is outpacing wage gains and being fanned further by the war in Ukraine. That’s already causing some to limit their
purchases of certain goods or services, and a slowdown in consumption would pose a risk to economic growth.
Still, steady labour market gains have pushed employment back to pre-pandemic levels in some sectors, buoying US households.
The economy probably added close to a half million jobs in March as the unemployment rate fell to 3.7%, according to the median projections in a Bloomberg survey ahead of government data Friday.
The share of consumers who said jobs were “plentiful” increased to a record high 57.2%. A separate report Tuesday showed US job openings remained near a record in February.
Consumers were also mixed about their short-term financial prospects. The share who expect their incomes to rise in the next six months increased, but those who see their pay dropping also rose.
A gauge of current conditions rose by the most since June to 153, suggesting consumers had a more upbeat assessment of business conditions and the labor market. It may also reflect the rapid drop in omicron cases in the month, according to Ian Shepherdson, chief economist at Pantheon Macroeconomics.