…Rebounds sharply over past two months
As of April 2021, the United States Consumer Confidence Index increased to 121.7, up from 109.0 recorded at the end of March 2021.
Also, the Present Situation Index, based on consumers’ assessment of current business and labour market conditions, soared from 110.1 to 139.6, as per the US Conference Board latest consumer confidence survey.
Moreover, “the Expectations Index, based on consumers’ short-term outlook for income, business and labour market conditions, rose moderately from 108.3 last month to 109.8 in April”, the US Conference Board has indicated.
The Consumer Confidence has rebound sharply over the past two month that is sustaining a sharp increase from the month of March. The survey has concluded that, “consumers’ assessment of current conditions improved significantly in April, suggesting the economic recovery strengthened further in early Q2”.
Short-term consumer outlook held steady this month
Consumers’ optimism about the short-term outlook held steady this month. Notably, consumers were more upbeat about their income prospects, perhaps due to the improving job market and the recent round of stimulus checks.
It is to be noted that short-term inflation expectations held steady in April but remain elevated. Vacation intentions posted a healthy increase, likely boosted by the accelerating vaccine rollout and further loosening of pandemic restrictions.
Furthermore, “the percentage of consumers claiming business conditions are ‘good’ increased from 18.3 per cent to 23.3 per cent, while the proportion claiming business conditions are ‘bad’ fell from 30.1 per cent to 24.8 per cent,” according to the US Conference Board.
Consumers’ assessment of the labour market also improved from 26.5 per cent to 37.9 per cent.
According to the US Conference Board, “the percentage of consumers saying jobs are “plentiful” increased from 26.5 per cent to 37.9 per cent, while those claiming jobs are “hard to get” declined from 18.5 per cent to 13.2 per cent.