US: Expect steady reading of consumer sentiment data - Nomura

Analysts at Nomura note that the US consumer sentiment remained elevated according to the final reading of the University of Michigan’s March report and at 101.4, consumer sentiment is at its highest level since 2004.

Key Quotes

“Consumers mostly looked through the increased volatility in financial markets, but increased uncertainty about the impact of tariffs appears to have driven a slight downward revision in the final estimate that incorporates more information covering the full month. For early April, we expect consumers to remain optimistic considering the strong job market and consumers’ favorable assessment of the recent changes to tax policy. However, ongoing media coverage on trade tensions with China may affect consumer sentiment adversely.  Inflation expectations at the one-year horizon inched up 0.1pp from February to 3.8% in March, while 5-10-year inflation expectations were unchanged at 2.5%. We expect steady readings for April.”