What:  A surprise confidence boost is taking place in the US for circumstantial reasons

Why it is important: During the last quarter of 2022, US customers confidence helped many markets to stay afloat, such as Europe. Anything positive on this market might have again echoes in the rest of the world.

A surprising increase in consumer expectations boosted the Visa Conference Board Consumer Confidence Index to 104.2 in March.

Despite a 2.6 point increase in the future expectations component last month, it remained weak, with the present situation component slightly decreasing.

The rise in the March expectations index suggests steady spending growth in the coming months, but much of this is due to warmer weather, not a change in overall trends. Higher-income households have retained most pandemic-related savings and may hold onto cash amid uncertainty. Consumers plan to spend less on discretionary items like amusement parks and movies but more on healthcare, home and auto maintenance, and economical entertainment like streaming.

Median inflation expectations remained elevated at 6.3%, with consumers expecting prices to moderate in the coming year, staying below the 7.9% peak in mid-2022.

US customers confidence is growing