US Consumer Confidence Rose Sharply in March
US consumer confidence
The US Conference Board Consumer Confidence Index showed a massive improvement in March 2017. It was at 125.6 in March compared to 114.8 in February 2017. It beat the market expectations of 113.9.
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The index showed improved figures, as consumer sentiment toward the economy is on the rise. Expectations about the business climate, personal income, and labor market conditions improved. In the previous part of this series, we discussed that consumer spending played an important role in 4Q16 GDP growth.
Impact on the market
Since the US election, we have seen that the market is showing a strong rally. However, in March 2017, we saw that the market showed some pullback. President Trump’s efforts to replace the Affordable Care Act are failing so far, which has weighed on the index. The delay in policy reform is worrying some investors. Some investment firms are waiting for a change in policy so they can reevaluate their positions accordingly.
In the next part of this series, we’ll analyze the performance of the Germany Ifo business climate index in March 2017.