Wednesday, March 30, 2011

Consumer Pessimism is Back in March

Consumer confidence is an important barometer of coming consumer expenditures and, hence, of the economic outlook. In March, the increase in gas and food prices brought back consumer pessimism, notably as to their expectations about the short term evolution of the economy.

In the United States, the Conference Board index, published yesterday, and the Thomson Reuters/University of Michigan index, released last Friday, signal that consumers are significantly less confident in March than in February. In Canada, the equivalent index from the Conference Board of Canada, published yesterday, is also weaker in March than the preceding month.

In Europe, consumer confidence is slightly lower this month compared to February, according to data published by the European Commission. In the euro area, it stays close to the long term historical trend, while in the European Union as a whole, it slips slightly below the historical trend.

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