US consumer confidence will continue to improve in the months ahead

US Conference Board's index of consumer confidence shot up to 101.3 in March from an upwardly revised 98.8 in February (previously reported at 96.4). The reading came in well ahead of the consensus expectation for a flat reading.

"With household spending appearing to stall in the first quarter despite considerable income gains, the improvement in consumer sentiment is particularly reassuring. The rise in consumer expectations - especially for employment and income - suggests that spending will bounce back in the quarters ahead, making up for the poor pace of growth at the start of the year." - said TD Economics in a report on Tuesday

The rise in the headline index was due entirely to the expectations component, which rose to 96.0 from 90.0 in February. The present situation index slipped to 109.1 from 112.1.

"The continued rise in equity and home prices and improving job market suggest that consumer confidence will continue to improve in the months ahead, giving support to household spending." added TD Economics