After a dramatic decline of nearly 11 points in February’s Consumer Confidence reading, American’s confidence in the economy jumped just over 6 points in March to 52.2. The Consumer Confidence index is an important indicator as consumer spending accounts for nearly 70 percent of the economic activity in the US. This means that until consumer spending returns to pre-recession levels, economic growth will remain muted.
Despite the return to positive increase in the index, March’s result is still the lowest level since April of 2009.
“Despite the month’s increase, consumers continue to express concern about current business and labor conditions,” Lynn Franco, director of The Conference Board Consumer Research Center, said in a statement. “And their outlook for the next six months is still rather pessimistic.”
Source: Associated Press
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