A report from
the University of Michigan showed on Friday that the preliminary reading for
the Reuters/Michigan index of consumer sentiment decreased 0.5 per cent m-o-m
to 76.5 in early March. This represented the lowest reading in
three months.
Economists had predicted
the indicator would come in at 76.9 this
month, unchanged from the February final
reading.
According to
the report, the index of current economic conditions remained unchanged at 79.4 in March, while the index of consumer expectations dropped 0.8 per cent
m-o-m to 74.6.
The report also
revealed that the estimates of year-ahead expected inflation held steady
at 3.0 per cent early this month, while the 5-year expected inflation also stood unchanged at 2.9 per
cent.
Commenting on
the latest findings, Surveys of Consumers Director Joanne Hsu noted that consumer
sentiment had been steady and essentially unchanged since January 2024. "After
strong gains between November 2023 and January 2024, consumer views have
stabilized into a holding pattern; consumers perceived few signals that the
economy is currently improving or deteriorating," she added. "Indeed, many
are withholding judgment about the trajectory of the economy, particularly in
the long term, pending the results of this November’s election."