Consumer confidence continues to improve in March

April 1, 2013

Consumer confidence continued to improve in March due to more positive signs of expanding employment, according to University of Michigan economist Richard Curtin, director of the Thomson Reuters/University of Michigan Surveys of Consumers.

The surveys, conducted by the U-M Institute for Social Research, have been monitoring and expectations for more than 60 years.

Rising home prices also had a positive impact on consumer balance sheets and their willingness to purchase homes and vehicles, according to Curtin. The major problem now facing consumers is meager income increases, with half of all consumers expecting price increases to exceed income gains during the year ahead. While the cuts in and the hike in will be a drag on economic growth, consumers now anticipate that accelerated job gains will provide an improved and enable moderate economic growth.

Rising home prices expected to continue

Recent increases in home values were reported by the largest proportion of homeowners in more than five years, and continued gains in the value of their homes were expected by more homeowners than at any time since the March 2007 survey. The pace of has directly benefitted by making owners more willing to sell their current home as well as hastening the timing of buying another home before prices increase even more. Along with rising , higher home prices have indirectly helped to boost other purchases due to the increase in household wealth.

Interest-sensitive purchases expected to improve

Vehicle buying attitudes remained at very positive levels throughout the past six months due to favorable perceptions of prices and interest rates on vehicle loans. The data indicate light vehicle sales will reach 15.6 million units during 2013, up from 14.4 in 2012. Despite the recent rise in , few consumers cited those increases in the past few months as a disruptive force when asked about their vehicle buying intentions.

Consumer sentiment index

The Sentiment Index was 78.6 in the March 2013 survey, up from 77.6 in February and above last March's reading of 76.2. The Expectations Index was 70.8 in March, just ahead of the 70.2 in February and the 69.8 recorded last March. The Current Economic Conditions Index rose to 90.7 in March, just ahead of the 89.0 in February and 86.0 recorded last March.

About the survey

The Surveys of Consumers is a rotating panel survey based on a nationally representative sample that gives each household in the coterminous U.S. an equal probability of being selected. Interviews are conducted throughout the month by telephone. The minimum monthly change required for significance at the 95-percent level in the Sentiment Index is 4.8 points; for Current and Expectations Index the minimum is 6.0 points. For more information, visit the Surveys of Consumers website at

Explore further: Consumer confidence improves in January due to job gains: U-M economist

More information: Related Links:

  • Link to related Excel chart
  • Link to related Excel table
  • Surveys of Consumers
  • Video about the Surveys of Consumers is available at

Related Stories

Gains in consumer confidence continue, depend on job growth

May 28, 2012

( -- Consumer confidence improved in each of the past nine monthly surveys, rising to its highest level this month since October 2007, according to University of Michigan economist Richard Curtin, director of the ...

Consumer confidence improves slightly in August

September 3, 2012

(—Consumer confidence improved slightly in August due to consumers' more favorable evaluations of their present financial situations, according to University of Michigan economist Richard Curtin, director of the ...

Consumer confidence posts a significant gain in September

October 1, 2012

Consumer confidence improved substantially in September due to more favorable prospects for the national economy, according to University of Michigan economist Richard Curtin, director of the Thomson Reuters/University of ...

Consumer confidence plunges in December

December 24, 2012

(—Confidence plunged in December as consumers confronted the rising likelihood that political gridlock would push the country over the fiscal cliff.

Recommended for you

Who you gonna trust? How power affects our faith in others

October 6, 2015

One of the ongoing themes of the current presidential campaign is that Americans are becoming increasingly distrustful of those who walk the corridors of power – Exhibit A being the Republican presidential primary, in which ...

Ancient genome from Africa sequenced for the first time

October 8, 2015

The first ancient human genome from Africa to be sequenced has revealed that a wave of migration back into Africa from Western Eurasia around 3,000 years ago was up to twice as significant as previously thought, and affected ...

The hand and foot of Homo naledi

October 6, 2015

The second set of papers related to the remarkable discovery of Homo naledi, a new species of human relative, have been published in scientific journal, Nature Communications, on Tuesday, 6 October 2015.

From a very old skeleton, new insights on ancient migrations

October 9, 2015

Three years ago, a group of researchers found a cave in Ethiopia with a secret: it held the 4,500-year-old remains of a man, with his head resting on a rock pillow, his hands folded under his face, and stone flake tools surrounding ...

Mexican site yields new details of sacrifice of Spaniards

October 9, 2015

It was one of the worst defeats in one of history's most dramatic conquests: Only a year after Hernan Cortes landed in Mexico, hundreds of people in a Spanish-led convey were captured, sacrificed and apparently eaten.

1 comment

Adjust slider to filter visible comments by rank

Display comments: newest first

not rated yet Apr 11, 2013
Because of expanding employment, consumer confidence had increased or has improved a bit. However,
in the wake of greater social security taxes and reduced pay checks, the nation's consumer confidence has dropped to its lowest level in more than a year, according to a Conference Board statement. Source for this article:

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.