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Economic news
12.04.2024

U.S. consumer sentiment index drops more than anticipated in early April

A report from the University of Michigan revealed on Friday that the preliminary reading for the Reuters/Michigan index of consumer sentiment declined 1.9 per cent m-o-m to 77.9 in early April. 

Economists had expected the indicator would slip to 79.0 this month from the March final reading of 79.4.

According to the report, the index of current economic conditions plunged 3.9 per cent m-o-m to 79.3 in April, while the index of consumer expectations decreased 0.5 per cent m-o-m to 77.0.

The report also showed that the estimates of year-ahead expected inflation climbed from 2.9 per cent in March to 3.1 per cent early this month, the highest level since December 2023 (3.1 per cent). Meanwhile, the 5-year expected inflation jumped from 2.8 per cent to 3.0 per cent, the highest level since November 2023 (3.0 per cent).

Commenting on the latest findings, Surveys of Consumers Director Joanne Hsu said that the April uptick in inflation expectations reflects some frustration that the inflation slowdown may have stalled. “Overall, consumers are reserving judgment about the economy in light of the upcoming election, which, in the view of many consumers, could have a substantial impact on the trajectory of the economy,” she added.

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