The small decline in the Conference Board measure of consumer confidence in March from an 18-year high in February leaves the index still well above its historical average. The relationship between confidence and spending growth has broken down in the past year or so but, with the tax cuts now showing up in their take-home pay and consumers still feeling positive, we think consumption growth will be close to 3% in 2018.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services