US: UoM Consumer Sentiment Index improves to 83 in March vs. 78.5 expected

• Consumer confidence in US strengthens sharply in March.
• US Dollar Index clings to strong daily gains, stays below 92.00.

The Consumer Sentiment Index in the US improved sharply to 83 (preliminary) in March from 76.8 in February, the University of Michigan's latest Surveys of Consumers showed on Friday. This reading came in much better than the market expectation of 78.5.

Further details of the publication revealed that the Current Economic Conditions Index rose to 91.5 from 86.2 and the Consumer Expectations Index climbed to 77.5 from 70.7. Finally, the 1-year Inflation Outlook declined to 3.1% from 3.3%.

Commenting on the data, "consumer sentiment rose in early March to its highest level in a year due to the growing number of vaccinations as well as the widely anticipated passage of Biden's relief measures," said Surveys of Consumers chief economist, Richard Curtin. "The early March gains were not equally shared across all Index components, with consumers voicing no improvement in some key facets of consumer finances."

Market reaction

The US Dollar Index showed no immediate reaction to this report and was last seen gaining 0.4% on the day at 91.80.