March Consumer Confidence PLUMMETS
Preliminary results for the Thomson Reuters/University of Michigan monthly consumer confidence survey have been released, with a 71.8 reading.
The figure has taken quite the nosedive from the February reading of 77.6.
Although economists expected a modest rise to 78.0 for March, observers note the drop in the rival IBD/TIPP Economic Optimism Index, released last week.
The decline in the IBD/TIPP index has been attributed to three key factors, including drops in the Six-Month Economic Outlook (down 18%), the Personal Financial Outlook (down 4.4%) and Confidence in Federal Economic Policies (down 11%). These components, coupled with the payroll tax increase and the perceived impacts of the sequester in Washington likely impacted the University of Michigan readings.
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