US Consumer Sentiment and Inflation Expectations Remain Stable in March
Consumer Sentiment Holds Steady
U.S. consumer sentiment and inflation expectations showed little change in March, according to a recent survey. The University of Michigan’s preliminary reading on the overall consumer sentiment index came in at 76.5 this month, slightly lower than the final reading of 76.9 in February. Economists had anticipated a reading of 76.9, indicating a slight deviation from expectations.
Economic Uncertainty Persists
Despite the marginal shift in sentiment, consumers remain cautious about the current state and future trajectory of the economy. Joanne Hsu, Director of Surveys of Consumers, noted that many individuals are refraining from making definitive judgments on the economy’s long-term prospects. The upcoming November election is a significant factor influencing their outlook, leading to a sense of uncertainty among consumers.
Inflation Expectations Unchanged
The survey revealed that one-year inflation expectations remained steady at 3.0% in March. Additionally, the five-year inflation outlook held firm at 2.9% for the fourth consecutive month. This consistency in inflation expectations indicates a level of stability in consumer perceptions regarding future price trends.
