US consumer confidence surged to one-year high in March

[NEW YORK] US consumer confidence rose in March to a one-year high as Americans grew more upbeat about the economy and labour market, a sign that household spending may pick up more broadly in the coming months.

The Conference Board's index increased to 109.7 from a revised 90.4 reading in February, according to a report Tuesday. The median forecast in a Bloomberg survey of economists called for the measure to rise to 96.9.

Households' outlooks brightened as millions received Covid-19 vaccinations and restrictions on businesses were lifted more broadly. A fresh round of fiscal stimulus also likely helped boost sentiment and is projected to bolster economic activity and the job market in coming months.

The group's gauge of expectations rose to 109.6, the highest since July 2019, while a measure of sentiment about current conditions rose to a one-year high of 110. The 18.7-point gain from February in the measure of outlook was the largest since May 2009.

"Consumers' assessment of current conditions and their short-term outlook improved significantly, an indication that economic growth is likely to strengthen further in the coming months," Lynn Franco, senior director of economic indicators at the Conference Board, said in a statement.

"Consumers' renewed optimism boosted their purchasing intentions for homes, autos and several big-ticket items."

BLOOMBERG