Consumer Confidence Sinks to Lowest Level Since 2017: Talking Points
- Consumer Confidence hits lowest point since July 2017
- Virus fears drag down sentiment as recession fears accelerate
- The US Dollar shifted temporarily higher on the release
US consumer confidence sank for the month of March according to the Conference Board, coming in at 120.0 from 132.6. The downbeat figure represents the lowest level for the index since 2017. The US Dollar ticked up modestly as the news crossed the wires, but quickly gave its gains. Greenback strength appears prompted to continue as the downbeat figure injects further worry into the outlook for the US economy.
US Dollar (1-Min Chart)
Source: IG Charts
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Covid-19 worries were responsible for the bulk of the decline in the index as the virus continues its spread through the United States. The present situation index, representing business and job market conditions, shifted down to 167.7 from 169.3 the month prior. Senior Director of Economic Indicators at The Conference Board suggested that March’s shift lower in confidence is likely to continue as the sharp move lower “is more in line with a severe contraction”.
US Consumer Confidence at 2017 Levels on Virus Fears
Along with consumer confidence released this morning, markets will be focusing on tomorrows ISM manufacturing figures for March and on the highly anticipated non-farm payrolls report due out Friday morning. Analysts are expecting a loss of 100k jobs for the month of March which would be the steepest drop since 2010.