Economy: Consumer Confidence Index (CCI) for March 2018

The Consumer Confidence Index® (CCI) for this month (March 2018) was released by The Conference Board® this morning:

Predicted: 131.0
Actual: 127.7

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Previous Month (revised): 130.0

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The "predicted" figure is what economists were expecting, while the "actual" is the true or real figure.

From Today's Report:

"...'Consumer confidence declined moderately in March after reaching an 18-year high in February,' said Lynn Franco, Director of Economic Indicators at The Conference Board. 'Consumers’ assessment of current conditions declined slightly, with business conditions the primary reason for the moderation. Consumers’ short-term expectations also declined, including their outlook for the stock market, but overall expectations remain quite favorable. Despite the modest retreat in confidence, index levels remain historically high and suggest further strong growth in the months ahead.'

Consumers’ assessment of current conditions eased in March. The percentage saying business conditions are 'good' increased from 36.5 percent to 37.9 percent, however those claiming business conditions are 'bad' also increased, from 11.3 percent to 13.4 percent. Consumers’ assessment of the labor market was marginally more favorable. Those claiming jobs are 'plentiful' increased from 39.1 percent to 39.9 percent, while those claiming jobs are 'hard to get' decreased from 15.1 percent to 14.9 percent.

Consumers were moderately less optimistic about the short-term outlook in March. The percentage of consumers anticipating business conditions will improve over the next six months decreased from 25.0 percent to 23.0 percent, while those expecting business conditions will worsen increased from 9.4 percent to 9.8 percent.

Consumers’ outlook for the job market was also less positive. The proportion expecting more jobs in the months ahead decreased from 22.4 percent to 19.1 percent, while those anticipating fewer jobs increased from 12.4 percent to 12.6 percent. Regarding their short-term income prospects, the percentage of consumers expecting an improvement decreased from 23.5 percent to 22.0 percent, however, the proportion expecting a decrease also declined, from 8.6 percent to 7.2 percent..."

Every month, The Conference Board sends a questionnaire to 5,000 U.S. households. Survey participants are polled about their feelings regarding the U.S. economy, current and future, and about their own fiscal circumstances. On average, 3,500 participants complete and return the 5-question survey.

The baseline "100" score for the CCI is associated with 1985 survey data.

When consumers feel good about the economy, they tend to do more spending, and vice versa.

Based in New York City, The Conference Board is a private, not-for-profit organization with a mission to, "create and disseminate knowledge about management and the marketplace to help businesses strengthen their performance and better serve society."

The CCI is usually released on the last Tuesday of the month.