American consumer sentiment reached a one-year high in early March on the back of optimism on the world’s biggest economy, according to Bloomberg.
- The preliminary sentiment of University of Michigan improved to 83 versus 76.8 the previous month. This is the highest since February 2020. Analysts predicted 78.5.
- The barometer of current economic conditions jumped to a one-year high of 91.5 from 86.2 in February. Consumer expectations increased to 77.5 from 70.7.
- Survey director Richard Curtin said the data indicates strong growth in consumer spending. The biggest gains were recorded in services, including travel and restaurants.
- Spending is expected to pick up the coming months, with stronger buying conditions for durable goods.
- The findings anticipated the passing of the $1.9 trillion stimulus signed by President Joe Biden on Thursday. This includes $1,400 stimulus checks for most Americans.
- Consumers expect inflation at 3.1% in the next 12 months versus 3.3% in February.
- The survey was conducted from February 24 to March 10.