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.