US consumer confidence rebounds
US consumer confidence rebounded in March, reversing some of the deep pessimism seen the month before, according to a closely watched survey released today.
The Conference Board, a business research firm, said its consumer confidence index rose to 52.5 points in March, from a revised figure of 46.4 in February.
The monthly poll asks 5,000 US households a series of questions about their level of confidence in the economy. The results produce an index were 100 points would signify absolute confidence, while zero represents absolute pessimism.
Amid widespread concerns over joblessness, consumer confidence had fallen dramatically between January and February, down from 56.5 points in the first month of the year to the index's lowest level since April 2009.
'Consumer confidence, which had declined sharply in February, managed to recoup most of the loss in March,' said Lynn Franco, director of The Conference Board's consumer research centre.
Consumer spending drives about two-thirds of US economic activity and is considered a key factor in achieving a sustainable recovery from the worst recession in decades.
The result was slightly better than the 51 expected by investors. But the more positive reading masked deep underlying concerns about the state of the world's largest economy.
'Despite this month's increase, consumers continue to express concern about current business and labor market conditions,' Franco said.
'And, their outlook for the next six months is still rather pessimistic. Overall, consumer confidence levels have not changed significantly since last spring,' she said. But expectations did improve slightly.
According to The Conference Board, expectations about the health of the economy in the economy in the coming six months improved to 70.2 points from 62.9 in February.
