Consumer sentiment falls in April on worries about sticky inflation
By Jeffry Bartash
U.S. consumer sentiment index still well below prepandemic levels
The numbers: An early reading of consumer sentiment in April retreated from a 32-month high, a sign of some frustration on the part of Americans about lingering inflation.
The first of two readings of the consumer-sentiment survey dipped to 77.9 this month from 79.4 in March, the University of Michigan said Friday.
The index reached the highest level in March in 32 months, but it's still well below the prepandemic peak of 101.
What's more, the survey has barely changed in the first three months of 2024. The upcoming presidential election pitting Joe Biden vs. Donald Trump has made a lot of Americans anxious, the survey indicated.
Key details: A gauge that measures what consumers think about the current state of the economy dropped to 79.3 from 82.5.
A measurement of expectations for the next six months slipped to 77.0 from 77.4.
Consumers think inflation will average 3.1% in the next year, up from 2.9% in the prior month.
The rate of inflation based on the consumer price index rose to 3.5% in March from 3.2% in the prior month and hit the highest level since last fall.
Looking ahead: "A slight uptick in inflation expectations in April reflects some frustration that the inflation slowdown may have stalled," said survey director Joanne Hsu.
"Overall, consumers are reserving judgment about the economy in light of the upcoming election, which, in the view of many consumers, could have a substantial impact on the trajectory of the economy," she added.
Market reaction: The Dow Jones Industrial Average DJIA and S&P 500 SPX fell in Friday trading. Stocks have gyrated this week over worries about whether the Fed will delay rate cuts.
-Jeffry Bartash
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04-12-24 1014ET
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