A pedestrian passes in front of a store in the Georgetown neighborhood of Washington, D.C. Photographer: Andrew Harrer/Bloomberg
Consumer sentiment in March reached the highest level since 2004 as a solid labor market and growth expectations offset concerns about tariffs and stock-market volatility, a University of Michigan survey showed Thursday.
Key Takeaways
The advance in confidence underscores buoyant consumer sentiment following tax cuts and one-time bonuses that boosted many Americans' take-home pay.
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Separate data released Thursday showed signs of surprisingly robust momentum in the economy, with jobless claims falling to the lowest level since 1973, personal income growing 0.4%, and spending expanding 0.2%.
The data all underpin strength of consumer spending, the biggest part of the U.S. economy.
But there were some cooler signals in the Michigan report, as year-ahead inflation expectations rose. Also, the level of consumers citing concerns about trade and government policies slightly exceeded those who saw benefits from recent tax policies.
"Consumers remain confident in their future job and income prospects," Richard Curtin, director of the University of Michigan consumer survey, said in a statement. "This newfound confidence is anchored more in stability of these economic prospects rather than the size of the expected gains."
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