The U.S. banking turmoil has so far not really impacted consumers.
Still, consumers are getting impatient in this economy.
The University of Michigan’s Consumer Sentiment Index was revised lower to 62 in March, down from a previous estimate of 67. This was the first decline in the UMich sentiment index in four months.
Expectations were adjusted lower to 59.2 and current conditions were changed lower to 66.4.
One-year-ahead inflation expectations fell to 3.6 percent and the five-year outlook edged up to 2.9 percent.
From Joanne Hsu, the Surveys of Consumers Director, said in a statement:
“This month’s turmoil in the banking sector had limited impact on consumer sentiment, which was already exhibiting downward momentum prior to the collapse of Silicon Valley Bank.”
But will this diminishing confidence weigh on the broader economy that is two-thirds consumption?
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