In order to make economic news something more than snooze-worthy on a regular basis, economists, analysts, and pundits rely on a number of indexes made up of reportable statistics. One of those is “consumer sentiment” that is measured by the amount of income gain the people have in any given time period.
In March, incomes grew quite a bit as the Trump economy, unfettered by the regulations that built up during previous administrations and which have been significantly reduced put together with tariffs that make American products competitive, continues to chug along full steam ahead.
American consumers regained their mojo in March, pushing the University of Michigan’s consumer sentiment up to 98.4 from February’s 93.8.
Economists had expected the final read to match the preliminary reading for March of 97.8….
The March gain was entirely due to households with incomes in the bottom two-thirds of the income distribution, according to the survey’s chief economist Richard Curtin. Sentiment among households in the top third of incomes fell slightly.
“Middle and lower income households more frequently reported income gains than last month, although income gains were still widespread among upper income households. Indeed, the last time a larger proportion of households reported income gains was in 1966,” Curtin said.
The lower two-thirds of income brackets, of course, are those where the blue collar workers are, the people whose jobs were shipped overseas and were told that they were never coming back by a previous occupant of the Oval Office.
How wrong that man was.
The survey itself has been criticized for having too few participants to be a true indicator of American economic recovery, but the results indicate that the middle class is seeing a resurgence of spending power. Also indicated is that the people are not worried overmuch about inflation.
How long this lasts will be interesting to observe.