Home >> News >> Data >> Consumer Sentiment Slips in April, Matches Year-Ago Level
Print This Post Print This Post

Consumer Sentiment Slips in April, Matches Year-Ago Level

The ""Survey of Consumers"":http://press.sca.isr.umich.edu/ Index of Consumer Sentiment dropped a bit from March to April but stayed level on a yearly basis, according to the latest release.

[IMAGE]

The survey, conducted at the ""University of Michigan"":http://www.umich.edu/ and distributed by ""Thomson Reuters"":http://thomsonreuters.com/, shows Americans demonstrating more optimism about their current situations but apprehension about the future.

The overall index declined to 76.4 from 78.6 in March, a drop of 2.8 percent. April 2012's index also read 76.4.

""The overall level of confidence declined in April from March, but was identical to last April reading,"" Survey of Consumers reported. ""Most of the April loss was in how consumers viewed future economic prospects. In particular, consumers were less optimistic about the ability of the economy to continue to expand without a renewed downturn sometime in the next five years.""

The Current Conditions Index, meanwhile, was 89.9, a drop of 0.9 percent from March's 90.7. Compared to last [COLUMN_BREAK]

year, consumers were much more positive about their current circumstances, with April 2013's index coming in 8.4 percent above April 2012's 82.9.

According to Survey of Consumers, rising home values were reported by the highest number of homeowners since late 2007, though that percentage remains at less than half of its 2005 peak of 76 percent. Upper-income consumers were more confident about home values and showed more favorable attitudes toward vehicle and homebuying conditions.

At the same time, the Index of Consumer Expectations fell to 67.8, a 4.2 percent decline from March's 70.8. Last April, the expectations index read 72.3.

Only one in four consumers in April's survey anticipated a decline in the unemployment rate during the year ahead. When asked about anticipated income gains, half expected no gain in their household incomes during the year ahead, and half of all consumers thought there was less than a 25 percent chance of an increase in their inflation-adjusted income during the next five years.

Richard Curtin, chief of economists for Survey of Consumers, noted that the chaotic and tragic events of mid-April apparently had little effect on economic confidence, which improved after posting declines early in the month.

""Even when consumers were asked to describe in their own words their economic situation and that of the nation as a whole, there were virtually no references to the Boston marathon bombing,"" Curtin said. ""Of course, this does not mean that people did not grieve at the human tragedy, only that consumers did not think the events in Boston would influence national economic prospects.""

x

Check Also

Survey: Homeownership Remains Elusive for Baby Boomer Renters

A recent look into housing affordability by NeighborWorks America has found that three in five long-term baby boomer renters feel homeownership remains unattainable.