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Confidence drops in March

3/31/2020
In a month that saw a surge in unemployment claims, Consumer Confidence dropped significantly. And the Conference Board warned that more drops are certain to follow.

Consumer Confidence Index for March came in at 120.0 (1985=100), down from 132.6 in February.

Meanwhile, the March Expectations Index – based on consumers’ short-term outlook for income, business and labor market conditions – declined from 108.1 last month to 88.2 this month.

“Consumer confidence declined sharply in March due to a deterioration in the short-term outlook,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board.

She said the Present Situation Index remained strong, reflecting an economy that was on solid footing prior to the big surge in unemployment claims. However, she added: “the intensification of COVID-19 and extreme volatility in the financial markets have increased uncertainty about the outlook for the economy and jobs. March’s decline in confidence is more in line with a severe contraction – rather than a temporary shock – and further declines are sure to follow.”
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