U.S. Consumer Sentiment Improves More Than Initially Estimated In April
Revised data released by the University of Michigan on Friday
showed consumer sentiment in the U.S. improved by more than
initially estimated in the month of April.
The report showed the consumer sentiment index for April was
upwardly revised to 88.3 from a preliminary reading of 86.5.
Economists had expected the index to be upwardly revised to
The consumer sentiment index rose from 84.9 in March to reach
its highest level since hitting 89.1 in March of 2020.
"The April survey recorded continued gains in consumer
confidence due to a growing sense that the upward momentum in jobs
and incomes will persist," said Surveys of Consumers chief
economist Richard Curtin.
He added, "The renewed confidence is due to record federal
stimulus spending, both recently passed and proposed, as well as
the positive impact from a growing share of the population who are
The report showed the current economic conditions index climbed
to 97.2 in April from 93.0 in March, while the index of consumer
expectations rose to 82.7 from 79.7.
On the inflation front, one-year inflation expectations jumped
to 3.4 percent in April from 3.1 percent in March, but five-year
inflation expectations dipped to 2.7 percent from 2.8 percent.
"While temporary price hikes are anticipated, the robust
increases in consumer demand will act to lengthen and heighten
inflation above the modest increases now anticipated," said
He added, "It will be a challenge to fine-tune fiscal and
monetary policies that allow inflation to modestly exceed the 2%
target for a limited time without contributing to an underlying
upward momentum in inflation."
On Tuesday, the Conference Board released a separate report
showing U.S. consumer confidence reached its highest level since
February of 2020 in the month of April.
The Conference Board said its consumer confidence index jumped
to 121.7 in April after spiking to a revised 109.0 in March.
Economists had expected the consumer confidence index to rise to
112.0 from the 109.7 originally reported for the previous