Confidence rebounds in April
American consumers were feeling more confident in April, sending a key index to nearly an 18-year high.
The Conference Board said that its confidence index increased to 128.7 in April, following a decline in March (to 127.0). The March level was just below the 130.0 hit in February, which was the highest recorded since November 2000.
“Consumer confidence increased moderately in April after a decline in March,” said Lynn Franco, director of economic indicators at The Conference Board. “Consumers’ assessment of current conditions improved somewhat, with consumers rating both business and labor market conditions quite favorably.”
Consumers’ short-term expectations also improved, with the percent of consumers expecting their incomes to decline over the coming months reaching its lowest level since December 2000 (6%). Overall, Franco said, confidence levels remain strong and suggest that the economy “will continue expanding at a solid pace in the months ahead.”
Naveen Jaggi, president of retail advisory services, JLL, added a cautionary note.
“One thing to watch in the coming months is energy prices, which have been rebounding,” he said. “Oil has quietly risen from $26 per barrel to almost $70 per barrel over the last two years, but as we head into the summer months increased transportation costs for summer travelers could throw a wrench in the mix.”
The Present Situation Index increased from 158.1 to 159.6 in April, while the Expectations Index improved from 106.2 last month to 108.1 this month. Consumers’ appraisal of current conditions improved modestly in April, according to The Conference Board. The percentage saying business conditions are “good” decreased from 37.6% to 35.2%. But those claiming business conditions are “bad” also decreased, from 13.3% to 11.3%.
Consumers’ assessment of the labor market was also mixed. The percentage of consumers claiming jobs are “plentiful” declined from 39.5% to 38.1%, while those claiming jobs are “hard to get” also declined, from 15.7% to 15.2 %.
Consumers were moderately more positive about the short-term outlook in April. The percentage of consumers anticipating business conditions will improve over the next six months increased from 23.2% to 24.5%. Those expecting business conditions will worsen decreased from 10.2% to 9.7%.
Consumers’ outlook for the labor market was also more positive. The proportion expecting more jobs in the months ahead increased from 18.95 to 19.5%. Those anticipating fewer jobs remained at 12.5%.
The Conference Board said that its confidence index increased to 128.7 in April, following a decline in March (to 127.0). The March level was just below the 130.0 hit in February, which was the highest recorded since November 2000.
“Consumer confidence increased moderately in April after a decline in March,” said Lynn Franco, director of economic indicators at The Conference Board. “Consumers’ assessment of current conditions improved somewhat, with consumers rating both business and labor market conditions quite favorably.”
Consumers’ short-term expectations also improved, with the percent of consumers expecting their incomes to decline over the coming months reaching its lowest level since December 2000 (6%). Overall, Franco said, confidence levels remain strong and suggest that the economy “will continue expanding at a solid pace in the months ahead.”
Naveen Jaggi, president of retail advisory services, JLL, added a cautionary note.
“One thing to watch in the coming months is energy prices, which have been rebounding,” he said. “Oil has quietly risen from $26 per barrel to almost $70 per barrel over the last two years, but as we head into the summer months increased transportation costs for summer travelers could throw a wrench in the mix.”
The Present Situation Index increased from 158.1 to 159.6 in April, while the Expectations Index improved from 106.2 last month to 108.1 this month. Consumers’ appraisal of current conditions improved modestly in April, according to The Conference Board. The percentage saying business conditions are “good” decreased from 37.6% to 35.2%. But those claiming business conditions are “bad” also decreased, from 13.3% to 11.3%.
Consumers’ assessment of the labor market was also mixed. The percentage of consumers claiming jobs are “plentiful” declined from 39.5% to 38.1%, while those claiming jobs are “hard to get” also declined, from 15.7% to 15.2 %.
Consumers were moderately more positive about the short-term outlook in April. The percentage of consumers anticipating business conditions will improve over the next six months increased from 23.2% to 24.5%. Those expecting business conditions will worsen decreased from 10.2% to 9.7%.
Consumers’ outlook for the labor market was also more positive. The proportion expecting more jobs in the months ahead increased from 18.95 to 19.5%. Those anticipating fewer jobs remained at 12.5%.