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CONSUMER CONFIDENCE FOUND HIGH

WASHINGTON (FNS) -- Consumer confidence in March continued to soar, a trend analysts say could prompt shoppers to buy higher-end merchandise at supermarkets."Consumer attitudes have a lot more influence on discretionary items, so the choice with food is whether you want to go upscale or not," according to Larry Horowitz, senior economist at Primark Decision Economics in Boston. "When confidence is

WASHINGTON (FNS) -- Consumer confidence in March continued to soar, a trend analysts say could prompt shoppers to buy higher-end merchandise at supermarkets.

"Consumer attitudes have a lot more influence on discretionary items, so the choice with food is whether you want to go upscale or not," according to Larry Horowitz, senior economist at Primark Decision Economics in Boston. "When confidence is high and incomes are good you tend to eat out more and buy higher-priced food items."

The Consumer Confidence Index for the month, released by the Conference Board, New York, rose 0.8 to 133.9 from 133.1 in February. Last February's index measured 133.8. Consumer confidence slumped last October, when it was 119.3, but has steadily risen since then.

"Consumers were more optimistic in the first quarter of this year than they were at the end of last year," said Lynn Franco, associate director of the Conference Board's Consumer Research Center.

"Their appraisal of current business conditions continues to sail at record-high levels, with no signs that confidence will erode anytime soon. Consumers are continuing to count on steady business growth, low inflation and a strong job market through the remainder of the century," Franco added.

Still, economists had mixed views as to whether high consumer confidence would mean increased spending.

Horowitz said the confidence measurement was a "positive sign for consumer spending. We're more and more optimistic about the next few months with regards to purchases of all kinds of consumer goods." In contrast, Don Ratajczak, director of Georgia State University's Economic Forecasting Center, commented that accelerated spending is unlikely, because Americans are already spending faster than their income is growing.

Ratajczak also forecasts that there could be a slowdown in the economy next year. But, as for now, there's no denying the generally buoyant mood.

"Most of the things that make consumers feel comfortable are going in the right direction," he said.

Reflecting this, the survey's Expectations Index, which measures consumer confidence in the next six months, rose to 104.7 in March, up from 103.4 in February.