US Consumer Confidence Falls in April as Pessimism Grows about Business and Labor Market Conditions
Consumer confidence in the US fell to 101.3 in April from 104 in March, according to data released by The Conference Board on Tuesday.[0] The drop in the consumer confidence index, which measures attitudes towards the economy and the job market, has been driven by a growing pessimism about the short-term outlook for business and labour market conditions.[1] The Expectations Index, based on consumers’ short-term outlook for income, business, and labour market conditions, fell to 68.1 from 74.0, marking the lowest level since July 2022.[2] The decline in confidence was particularly pronounced among consumers under 55 years of age and households earning over $50,000.[3] However, the Present Situation Index, based on consumers’ assessment of current business and labour market conditions, rose slightly from 148.9 to 151.1.[4] Overall purchasing plans for homes, autos, appliances, and vacations all pulled back in April, a signal that consumers may be economising amid growing pessimism, said Ataman Ozyildirim, senior director, economics at The Conference Board.[5] Meanwhile, inflation expectations over the next year have remained unchanged at 6.2%, down from the peak of 7.9% that was reached last year.[6]
0. “US: CB Consumer Confidence Index declines to 101.3 in April from 104 in March” FXStreet, 25 Apr. 2023, https://www.fxstreet.com/news/us-cb-consumer-confidence-index-declines-to-1013-in-april-from-104-in-march-202304251408
1. “Americans are getting worried about the job market” WENY-TV, 25 Apr. 2023, https://www.weny.com/story/48783039/americans-are-getting-worried-about-the-job-market
2. “US Consumer Confidence Dips to Lowest Since July as Outlook Dims” Yahoo Finance, 25 Apr. 2023, https://finance.yahoo.com/news/us-consumer-confidence-dips-lowest-144514565.html
3. “U.S. Consumer Confidence Worsened in April on Gloomier Economic Expectations” Morningstar, 25 Apr. 2023, https://www.morningstar.com/news/dow-jones/202304258620/us-consumer-confidence-worsened-in-april-on-gloomier-economic-expectations
4. “Consumer Confidence Sinks as Recession Headwinds Grow, USD Gains on Risk-off Mood” DailyFX, 25 Apr. 2023, https://www.dailyfx.com/news/consumer-confidence-sinks-as-recession-risks-grow-usd-gains-on-risk-off-mood-20230425.html
5. “The Conference Board: U.S. consumer confidence down in April” UPI News, 25 Apr. 2023, https://www.upi.com/Top_News/US/2023/04/25/consumer-confidence-conference-board-recession/9481682437722/
6. “US Consumer Confidence Declined in April” PR Newswire, 25 Apr. 2023, https://www.prnewswire.com/news-releases/us-consumer-confidence-declined-in-april-301806868.html
