American consumer confidence surged to a six-year high in March and house prices rose solidly in January, positioning the economy for stronger growth after a soft spot attributed to bad winter weather.
The upbeat outlook, however, was dimmed somewhat by other data on Tuesday showing new-home sales at a five-month low in February, partly because of the cold weather.
“The economy is showing signs of shaking off the weather effect. We are going to get a big lift to second-quarter growth from the weather,” said Ryan Sweet, a senior economist at Moody’s Analytics in West Chester, Pa.
The Conference Board said its index of consumer attitudes rose to 82.3, from 78.3 in February. That is the highest level since January 2008, just as recession started to take hold, and it beat economists’ expectations for a reading of 78.6.
The jump in confidence bodes well for the economy, even though consumers were less upbeat about the labor market.
An unusually cold and snowy winter has held back the economy, disrupting activity that includes hiring, spending and manufacturing. Growth in the first quarter is expected to have slowed considerably from the fourth quarter’s annualized 2.4 percent pace.