Consumer Confidence Index Declines More Than 5 Points In April

The Conference Board’s Consumer Confidence Index, which had declined in March, lost more ground in April. The Index now stands at 97.7 (1985=100), down from 103 in March. The Present Situation Index declined to113.6 from 117. The Expectations Index declined to 87.2 from 93.7.

“Less robust current conditions and a more cautious outlook have consumers feeling less confident in April than in March,” said Lynn Franco, director of The Conference Board’s Consumer Research Center. “Despite the decline, the Present Situation Index remains at levels indicative of a healthy economy. However, the Expectations Index is now at its lowest level since July 2003 when it registered 86.3. Looking ahead, consumers do not anticipate an improvement in economic growth nor in their incomes. And, they expect an even tighter job market over the summer months.”

Consumers rated current conditions as less favorable in April than in March. Although the percentage claiming business conditions are “good” edged up to 27 percent from 26.3 percent, those claiming conditions are “bad” increased slightly to 17.7 percent from 15.8 percent in March. The employment picture was also somewhat mixed. Consumers saying jobs are “hard to get” rose to 23.3 percent from 23.8 percent, but those claiming jobs are “plentiful” declined to 20.4 percent from 21.8 percent.

Consumers’ outlook for the next six months declined in April for the fourth consecutive time. Those anticipating business conditions to improve fell to 17.8 percent from 19.3 percent, while consumers expecting business conditions to worsen increased to 9.7 percent from 8.2 percent. The proportion of consumers anticipating their incomes to improve in the months ahead edged down to 16.3 percent from 17.2 percent last month.