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- U.S. consumer confidence improves more than forecast in April
U.S. consumer confidence improves more than forecast in April
The
Conference Board announced on Tuesday its U.S. consumer confidence climbed 12.7
points to 121.7 in April from 109.0 in March. This was the highest reading
since February 2020.
Economists
had expected consumer confidence to come in at 113.0.
March’s
consumer confidence reading was revised down from the originally estimated 109.7.
The
survey showed that the present situation index surged from 110.1 in March to 139.6
this month. Meanwhile, the expectations index increased from 108.3 last month
to 109.8 in April.
“Consumer
confidence has rebounded sharply over the last two months and is now at its
highest level since February 2020,” noted Lynn Franco, Senior Director of
Economic Indicators at The Conference Board. “Consumers’ assessment of current
conditions improved significantly in April, suggesting the economic recovery
strengthened further in early Q2. Consumers’ optimism about the short-term
outlook held steady this month. Consumers were more upbeat about their income
prospects, perhaps due to the improving job market and the recent round of
stimulus checks. Short-term inflation expectations held steady in April, but
remain elevated. Vacation intentions posted a healthy increase, likely boosted
by the accelerating vaccine rollout and further loosening of pandemic
restrictions.”
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