NEW YORK (AP) -- A strong economy and record stock market performance pumped up consumer confidence for a fifth-straight month in March, and many Americans expect the good times to continue.
The Conference Board reported Tuesday that its index of consumer confidence rose a stronger-than-expected 0.8 point to 133.9 in March from a revised 133.1 in February. The index dropped sharply in October and has since been making a steady recovery. The upward revision by the business-financed research group made the February number even stronger than the 132.1 originally reported.Consumer sentiment is an important economic indicator because consumer spending accounts for two-thirds of the nation's overall economic activity.
"Consumers were more optimistic in the first quarter of this year than they were at the end of last year," said Lynn Franco, associate director of the Conference Board's Consumer Research Center.
"Their appraisal of current business conditions continues to sail at record-high levels, with no signs that confidence will erode anytime soon. Consumers are continuing to count on steady business growth, low inflation and a strong job market through the remainder of the century," she said.
The survey said it found an all-time low 11.8 percent of consumers who reported jobs are hard to get. It also reported more Americans said they would buy a home, though fewer said they would buy a major appliance or a car in the next six months. Fewer consumers expect business conditions to get better.
The index that measures feelings about present conditions rose slightly to 177.8 in March from a revised 177.7 in February, reaching another new high in the 32 years that the survey has been compiled.
The index that measures expectations for the next six months was also higher, rising 1.3 points to 104.7.
The rising stock market, punctuated by the Dow Jones Industrial Average closing for the first time above 10,000 on Monday, was cited by analysts as a big reason for the strong consumer confidence. But Americans are also less worried about losing their jobs, which helps the confidence index.
Home buying plans was still another positive factor. "That is a shocker because home builders report reduced traffic, and interest rates are up," said Russ Sheldon, chief economist for Money Watch in New York. "This is a pretty rambunctious bunch."
The report comes amid strong economic growth in the United States, which is surprising to many economists who had expected the pace to slow in early 1999 as global financial turmoil threatened American prosperity.
The consumer confidence index, started in 1967, is compiled from responses to questions sent to 5,000 households nationwide. The survey polls consumers on matters ranging from job prospects to buying plans. The index compares results to its base year, 1985, when it stood at 100.