Consumer Confidence Highest Since April 2002

- Consumer Confidence for March rose to 107.2 versus estimates of 102.0 and a reading of 102.7 in February.

BOTTOM LINE: Consumer Confidence in the US economy jumped in March to the highest level in almost four years, driven by a strengthening labor market that’s lifting incomes and giving Americans means to spend, Bloomberg reported. The March reading beat even the highest estimate of 64 economists. The number of people saying that jobs are plentiful rose to the highest level since before the Sept. 11, 2001 terrorist attacks. Optimism about consumers’ present situation rose to 133.3, the highest since August 2001. The expectations component of the index rose to 89.9 from 84.2 the prior month. In my opinion, this component remains depressed due to the record number of leaders in the US, both political and financial, that perceive they benefit from spinning all news in a negative light. I continue to expect confidence to rise from current levels as irrational pessimism lifts further, energy prices fall, the labor market remains solid, stock prices rise further, housing stabilizes at more healthy levels and long-term rates remain relatively low.