Consumer Pessimism Receding; Investors' Confidence Up

Econoday reported yesterday that there are "more positives than negatives in the mid-March consumer sentiment report. The headline index edged 3 tenths higher to a still severely low level of 56.6. But expectations, the report's leading component, did rise 2-1/2 points to 53.0 -- indicating that pessimism isn't getting worse and perhaps hinting that pessimism may now be receding." The majority of economists were wrong as most were expecting the consumer sentiment index to fall during the month.

Rasmussen reported on Friday that "consumer and investor confidence continued to gain ground and is now at the highest levels since late January."

The Rasmussen Consumer Index, measures consumer confidence on a daily basis and it moved up for the third straight day. The index of 61.8 moved up four points from a week ago and is now over 60 for the first time since early February. Further Rasmussen says "confidence is the highest it’s been since January 23."

Investor confidence is also now at its highest level since late Jan.

"Fifteen percent (15%) of investors now say the economy is getting better, doubling the 7% who held that view just a few days ago (Tuesday)." This week saw "the number of investors who say the economy is getting worse fell from 75% on Tuesday to 64% today."

Consumer and Investment confidence is key as the economy reaches a tipping point, begins to exhibit more signs of recovery, and eventually returns to growth this summer.