With the latest data showing a significant upward revision, the Thomson Reuters/University of Michigan's revised report on March consumer sentiment index showed an unexpected increase compared to the previous month.
The report showed that the consumer sentiment index for March jumped to 78.6 from the mid-month reading of 71.8. With the massive upward revision, the index is now above the February reading of 77.6.
The surge compared to the preliminary reading came as a surprise to economists, who had expected the index show a much more modest upward revision to 72.5.
Survey director Richard Curtin said, "Consumers have discounted the administration's warning that economic catastrophe would follow the reductions in federal spending, and consumers have renewed their expectation that gains in employment will accelerate through the rest of 2013."
The upward revision to the headline number came as the expectations for March was upwardly revised to 70.8 from the preliminary reading of 61.7, with the latest reading come in above February's 70.2.
The barometer of current economic conditions for March was also upwardly revised to 90.7 from 87.5, coming in above the 89.0 recorded for February.
The report also showed that one-year inflation expectations dipped to 3.2 percent in March from 3.3 percent in February, while five-to-ten-year inflation outlook fell to 2.8 percent from 3 percent.
by RTT Staff Writer
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