U.S. Consumer Confidence Worsened in April on Gloomier Economic Expectations

By Ed Frankl

U.S. consumer confidence weakened more than expected in April, as economic expectations ticked down, as business expectations for the next six months darkened with growing fears of a recession.

Private research group The Conference Board said Tuesday that its consumer confidence index decreased to 101.3 in April from a downwardly revised 104.0 in March.

Economists polled by The Wall Street Journal had expected confidence at 104.0.

"While consumers' relatively favorable assessment of the current business environment improved somewhat in April, their expectations fell and remain below the level which often signals a recession looming in the short-term," said Ataman Ozyildirim, senior director, economics at The Conference Board.

The expectations-specific index fell to 68.1 in April from 74.0 in March, well below the 80-point level associated with a recession within the next year, the data showed.

Consumers were more pessimistic on month about business conditions and the labor-market outlook in the next six months, according to The Conference Board.

The board's measure for current business and labor market conditions rose, however, to 151.1 in April from 148.9, as fewer consumers said present business conditions were bad compared with the prior month, and consumers' opinion of the labor market improved slightly in the month.

April's decline in consumer confidence reflects declining expectations for consumers under 55 years of age and for households earning $50,000 and over, Mr. Ozyildirim said.

Meanwhile, April's data also showed that consumer inflation expectations over the next 12 months were mostly unchanged from March--at 6.2%--with purchasing plans for homes, autos, appliances and vacations all pulled back in April, a signal that consumers may be economizing amid growing pessimism, the board added.

Write to Ed Frankl at edward.frankl@wsj.com

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(END) Dow Jones Newswires

April 25, 2023 10:44 ET (14:44 GMT)

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