Consumer Confidence:  Modest Decline But Still Near Record Levels

Bottom Line: Holding near levels not see since 1999, the consumer confidence remained elevated in March, despite missing expectations modestly. The confidence index remains above its 3-month average as the impact of tax cuts has begun to be seen in lower payroll withholding. Consumer Confidence FELL by 2.3 points in March to 127.7, compared with market expectations for an increase to 131.0. The index is now 2.2% ABOVE its year ago level. Present Situation Index FELL by 1.3 points to 159.9. The index is 11.1% ABOVE its year ago level. The Expectations Index FELL by 3.0 points to 106.2. The index is 5.4% BELOW its year ago level. The labor differential, the percentage of respondents who said jobs are “hard to get” from the percentage who said jobs are “plentiful” , moved higher by 1.0 points to 25.0.