Confidence among U.S. consumers unexpectedly rose in March for a seventh straight month as Americans grew more upbeat about the economy. The Thomson Reuters/University of Michigan’s final index of consumer sentiment rose to 76.2, the highest since February 2011, from 75.3 last month. A reading of 74.5 was projected after a preliminary March figure of 74.3, according to a median forecast of 63 economists surveyed by Bloomberg News.
Employment growth, income gains and higher stock prices are helping sustain the improvement in confidence that may help lift consumer spending, which accounts for about 70 percent of the economy. At the same time, gasoline that’s increased 20 percent so far this year and currently approaching $4 a gallon, threatens to become a bigger strain on household budgets.
“There does appear to be some pent-up demand being released,” said Sean Incremona, senior economist with 4Cast Inc. in New York. “The resilience on the employment front and the higher stock market, it’s all off-setting the negative implications of higher gas prices.”
Estimates for the confidence measure ranged from 72 to 78, according to the Bloomberg survey. The index averaged 64.2 during the last recession. It averaged 89 in the five years before the 18-month economic slump that ended in June 2009.
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