Consumer confidence surges in March to highest point in year

WASHINGTON (AP) - U.S. consumer confidence surged in March to the highest reading in a year, helped by increased vaccinations and more government economic support.

The Conference Board said Tuesday its consumer confidence index rose to 109.7 in March, the best showing since it stood at 118.8 in March of last year as the pandemic was beginning to hit the United States. The index stood at 90.4 in February.

The present situations index, based on consumers' assessment of current business and labor market conditions, rose to 110.0, up from 89.6 in February. The expectations' index, based on consumers outlook for income, business and labor market conditions also improved, rising to 109.6 in March, up from a reading of 90.9 in February.

Conference Board senior indicators director Lynn Franco said the significant improvement in the index and its two major components was a good sign for future economic growth.

'œConsumers' renewed optimism boosted their purchasing intentions for homes, autos and several big-ticket items,'ť Franco said. But he noted that concerns about inflation had also risen, likely because of rising gasoline prices, and this could temper spending in the months ahead.