The Conference Board index stood at 107.3 points against 107.6 points in March. This is better than expected by a consensus of analysts who expected 106 points.
–
Consumer confidence in the United States deteriorated less than expected in April and remains rather high, likely reflecting an economy that continued to grow at the start of the second quarter, according to the Conference Board index published on Tuesday.
In April, the index stood at 107.3 points against 107.6 points in March, the level of which was revised upwards. This is better than expected by a consensus of analysts who expected 106 points.
In April, the perception of the current economic situation deteriorated, falling to 152.6 points (-1.2 points). Consumers, on the other hand, were more optimistic about future prospects (77.2 points against 76.7 points in March).
An index of 100 corresponds to consumer confidence in 1985.
“Consumer confidence eroded slightly in April, after a modest improvement in March,” responded Lynn Franco, senior director of economic indicators at the Conference Board, quoted in a press release.
“The index measuring current perception has fallen but remains at a high level, suggesting that the economy continued to expand at the start of the second quarter,” she added.
She notes that holiday plans are decreasing but intentions to purchase goods such as cars or household appliances are increasing.
“Nevertheless, buying intentions are down overall from recent levels as interest rates have started to rise,” Franco said.
She also noted that concerns about inflation remain elevated but have diminished after hitting a record high in March.
The economist expects inflation and the war in Ukraine to continue to weigh on confidence and could further dampen consumer spending this year.
This should slow down growth in the United States, which is largely driven by consumption.
–
