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30 Apr, 2021 15:38 30 Apr, 2021 15:45

US consumer confidence continues strengthening in April

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Americans were more confident in April thanks to the growing belief that the upward momentum in jobs and incomes would persist. the results of a closely-followed survey revealed.

As the survey's director, Richard Curtin, pointed out: "The largest and most important change in April was that an all-time record number of consumers expected declines in the unemployment rate during the year ahead."

The University of Michigan's closely-followed consumer confidence index rose from a reading of 84.9 for March to 88.3 in April.

Economists had forecast a reading of 87.5.

The sub-index tracking views on the current economic conditions strengthened by the most, from 93.0 to 97.2, while that linked to Americans' expectations improved from 79.7 to 82.7.

Inflation expectations one year out did pick up, from 3.1% to 3.4%; however, on a five-year time horizon they dipped from 2.8% to 2.7%.

In April 2020 five-year inflation expectations were at 2.5%.

Yet Curtin noted: "Even if a booming economy resulted in higher inflation, consumer optimism would not diminish since consumers have already anticipated a temporary increase.

"Overall, the data indicate an exceptional outlook for consumer spending through mid-2022. The size and persistence of the spending gains depend on continued job growth as well as wages that effectively draw people back into the labor force."


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Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.