US Consumer Confidence Recovers in April

They ‘expect the economy to continue growing at a solid pace into the summer months…’

US Consumer Confidence Recovers in April

AFP/A surprisingly strong increase in consumer confidence could bode will for spending and US economic growth in coming months

(AFP) American consumers in April grew more confident in business conditions and hiring prospects, suggesting they could spend more freely in spring months, according to a monthly survey released Tuesday.

The stronger-than-expected result in the Conference Board’s Consumer Confidence Index helps recover some of March’s losses and should support GDP growth in the second quarter.

The index rose five points to 129.2 for the month, stronger than economists had forecasts.

“Consumer Confidence partially rebounded in April, following March’s decline, but still remains below levels seen last fall,” Lynn Franco, head of  Conference Board economic indicators, said in a statement.

“Overall, consumers expect the economy to continue growing at a solid pace into the summer months.”

Views of current conditions and near-term expectations improved.

The share of consumers saying business conditions were “good” grew 2.6 points to 37.3 percent, while respondents saying jobs were “plentiful” jumped more than four points to 46.8 percent.

Meanwhile, near-term expectations for better business conditions and still more job openings also increased slightly.

RDQ Economics called the increased confidence “surprisingly strong” and said the report should reassure the Fed that consumption will be healthy in the second quarter of 2019.

“If the Fed continues to be worried about crosscurrents, US households appear to be relatively unperturbed,” the firm said in a client note.