US consumer confidence reversed its March’s gains, falling by 1.9 points in April to 94.2. Consumers continue to keep a cautious view on the economy, signifying slow growth in income, noted Wells Fargo. The expectations series in the confidence index accounts for 60% of the total index. It dropped to 79.3, falling 4.3 points. In March, the expectation series recovered possibly due to stock market rebound that started in mid-February, said Wells Fargo. The stock market performed well in April and March, and the gains seem to have alleviated concerns that economic conditions were to deteriorate.
The easing of concerns is seen clearly in the present economic situation views that rose in April by 1.5 points. But most of the rise was due to a huge decline in proportion of consumers saying that the business conditions at present were ‘bad’ and that jobs were ‘hard to get’. The number of consumers saying the present conditions are ‘good’ and jobs are ‘plentiful’ also fell, albeit lesser amounts in April. US consumers are keeping a cautious view regarding the country’s future economic conditions.
According to the Conference Board’s press release, consumers’ assessment of current conditions rebounded slightly in April. The proportion of consumers saying “business conditions are ‘good’ decreased from 24.9% to 23.2%. However, those saying business conditions are ‘bad’ also declined, from 19.2% to 18.1%. Consumers’ appraisal of the labor market was also mixed. Those claiming jobs are ‘plentiful’ decreased from 25.4% to 24.1%, however those claiming jobs are ‘hard to get’ also declined from 25.2% to 22.7%.”
The present consumer confidence level is in line with modest economic growth, said Wells Fargo.
