Expectations for the economy in the months ahead have dimmed, sending The Conference Board's Consumer Confidence Index lower in April.
After posting a modest increase in March, the Index dipped 1.9 to 94.2. While the Present Situation Index rose from 114.9 to 116.4, the Expectations Index dropped from 83.6 to 79.3 in April.
“Consumers’ assessment of current conditions improved, suggesting no slowing in economic growth,” noted Lynn Franco, director of Economic Indicators at The Conference Board. “However, their expectations regarding the short-term have moderated, suggesting they do not foresee any pickup in momentum.”
The current situation
Consumers’ appraisal of current conditions improved somewhat, with those who think business conditions are “good” dipping from 24.9% to 23.2%. At the same time, those who see business conditions as “bad” declined as well -- from 19.2% to 18.1%.
Their appraisal of the labor market was mixed as well. Those who believe jobs are “plentiful” fell from 25.4% to 24.1%, while those saying jobs are “hard to get” also dropped from 25.2% to 22.7%.
Consumers were less optimistic about the short-term outlook in April than they were last month. The percentage of consumers expecting business conditions to improve over the next six months decreased from 14.7% to 13.4%, while those expecting them to worsen rose to 11.0% from 9.5%.
The outlook for the labor market was also less favorable. Those who anticipate more jobs in the months ahead slipped from 13.0% to 12.2%, while those who think there will be fewer jobs edged up from 16.3% to 17.2%.
The proportion of consumers expecting their incomes to increase dropped 1.0% to 15.9%; those expecting to see their incomes go down also declined -- from 12.3% to 11.2%.
The monthly Consumer Confidence Survey, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a provider of information and analytics around what consumers buy and watch. The cutoff date for the preliminary results was April 14.