Consumers still spending
So far, consumers appear only a little worried about rising prices and interest rates. The Consumer Confidence Index dipped slightly for March. It’s published monthly by The Conference Board, a private business-research center.
“We haven’t seen much of a drawback on spending. It would really depend on how high and how long; I think duration is important here,” said Lynn Franco, a Conference Board economist. “So far, we’ve seen consumers at least weathering the hikes well.”
But Laura Dresser, research director at the Center on Wisconsin Strategies, a think tank at UW-Madison, added, “Inflation is obviously a problem for people. It stretches already stretched paychecks and high gasoline prices are hard for very many families to deal with on a budget. . . . Gas prices take a real toll on lower and moderate income families.”