Last Update: 27-Mar-15 10:12 ET
- The University of Michigan Consumer Sentiment Index was revised up to 93.0 in the March final reading from a preliminary reading of 91.2. The index is down from 95.4 in February. The Briefing.com Consensus expected the Consumer Sentiment Index to be revised up to 92.0.
- Improving job conditions -- lower initial claims levels -- offset higher gasoline prices and a volatile equity market.
- Even though sentiment is down on a month-to-month basis, a reading above 90 is still a strong result.
- Trends in sentiment, however, don't have much of an impact on consumption growth. Consumption trends rely on income growth and not sentiment. As long as income trends higher, consumption gains should closely follow.
- Consumer sentiment has little influence on consumption. As long as payroll levels continue to expand, the resulting income growth should keep consumption gains steady regardless of the monthly ebbs and flows in sentiment.