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The consumer sentiment index rose to 83 points, up from 76.8 in February. Although that’s still below the level from a year ago, it was stronger than experts had predicted.
Action Economics chief economist Mike Englund called the number a “hefty bounce.”
Notably, the survey was conducted before President Biden signed the stimulus bill Thursday and reflects only an expectation of more government aid.
“Consumer sentiment rose in early March to its highest level in a year due to the growing number of vaccinations as well as the widely anticipated passage of Biden’s relief measures,” said Richard Curtin, chief economist for the Survey of Consumers.
Even though all socioeconomic groups grew more optimistic this month, the biggest improvements were concentrated among those in the bottom third of income distribution, as well as among respondents aged 55 and older, Curtin said.
Survey respondents also upped their assessment of current economic conditions, as well as their expectations for the future, according to the data.
The new stimulus package includes direct checks to qualifying individuals with the intention to bolster spending in the months to come.
Economists have warned that inflation could pick up significantly as the economy reopens and Americans reopen their wallets.
The survey also found increased expectations for higher inflation, as well as higher mortgage and other loan rates, for the year ahead.
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