Consumer Confidence Dips in March After February Gain

After declining for three straight months, The Conference Board’s measure of consumer confidence surged in February, only to give back most of that gain in March.

The composite value of consumer confidence in March was 124.1, down from 131.4 in February. The 3MMA (three-month moving average) decreased from 126.6 in February to 125.7 in March, which was almost the same as March last year. We prefer to smooth the data with a moving average to reduce monthly volatility. The composite index is made up of two sub-indexes. These are the consumer’s view of the present situation and his or her expectations for the future. Both components are now below their nine-year trend line (Figure 1).