U.S. consumer confidence increased slightly during April, but underlying expectations for future conditions remain weaker than during the pandemic, according to the data released Tuesday by the Conference Board.
The Consumer Confidence Index (CCI) inched up to 92.8 in April from 92.2 in March. The CCI, which is based on a monthly survey that measures how optimistic or pessimistic consumers are about their finances and the economy, has a benchmark of 100. Any number below that signals pessimism and the likelihood of reduced consumer spending.
“Consumer confidence edged up in April but was overall little changed, despite material concern about rising gasoline prices as the war in the Middle East prompted a surge in Brent crude oil prices,” said Dana M Peterson, chief economist, The Conference Board.
“Consumer appraisals of current and expected business conditions declined moderately compared to last month,” Peterson said. “This was offset by modest improvements in consumers’ perceptions of the labor market, both current and expected, as well as income expectations, which were slightly more optimistic in April.”
The Present Situation Index— a CCI sub-index based on consumers’ assessment of current business and labor market conditions—retreated by 0.3 points to 123.8, a mark that reflects optimism.
The Expectations Index— a CCI sub-index based on consumers’ short-term outlook for income, business, and labor market conditions—rose by 1.2 points to 72.2. Economists view any mark below 80 as signaling recession risk, and the index has been below 80 for 15 consecutive months.
A two-week ceasefire in the Iran war and a rebound in stock market indices coincided with the survey-sample period (April 1–22) and likely helped ease concerns about financial indicators somewhat in April after spiking in March, the Conference Board said.
