Conference Board Consumer Confidence smashed expectations in March – bursting to 125.6 (114 exp) – the highest since December 2000. Both the present situation and expectations soared, jobs plentiful jumped to its highest since Sept 2001.
It seems that real earnings do not matter for confidence…
But stock market values do…
“Consumer confidence increased sharply in March to its highest level since December 2000 (Index, 128.6),” said Lynn Franco, Director of Economic Indicators at The Conference Board.
“Consumers’ assessment of current business and labor market conditions improved considerably. Consumers’ also expressed much greater optimism regarding the short-term outlook for business, jobs and personal income prospects. Thus, consumers feel current economic conditions have improved over the recent period, and their renewed optimism suggests the possibility of some upside to the prospects for economic growth in the coming months.”
As a reminder, UMIch confidcence saw a record partisan divide: The Current Economic Conditions component reached its highest level since
2000, largely due to improved personal finances. While current economic
conditions were not affected by partisanship, this was not true for the component about future economic prospects: among
Democrats, the Expectations Index at 55.3 signaled that a deep
recession was imminent, while among Republicans the Index at 122.4
indicated a new era of robust economic growth was ahead.