Consumer confidence slips in April

Consumer confidence took a small step back in April, though it wasn't necessarily a sign of a slowdown, according to The Conference Board.

The index, which had increased in March, declined to 94.2 in April, down from 96.1 the previous month.

“Consumer confidence continued on its sideways path, posting a slight decline in April, following a modest gain in March,” said Lynn Franco, director of economic indicators at The Conference Board. “Consumers’ assessment of current conditions improved, suggesting no slowing in economic growth. However, their expectations regarding the short-term have moderated, suggesting they do not foresee any pickup in momentum.”

The Present Situation Index increased from 114.9 to 116.4, with those saying business conditions are “good” decreasing from 24.9% to 23.2%, and those saying business conditions are “bad” also declining, from 19.2% to 18.1%. As for the labor market, those claiming jobs are “plentiful” decreased from 25.4% to 24.1%. However, those claiming jobs are “hard to get” also declined from 25.2% to 22.7%.

Meanwhile, the Expectations Index decreased from 83.6 to 79.3 in April.

Consumers were less optimistic about the short-term outlook in April than last month. Those expecting business conditions to improve over the next six months decreased from 14.7% to 13.4%, while those expecting business conditions to worsen rose to 11.0% from 9.5%.

Consumers’ outlook for the labor market was also less favorable. Those anticipating more jobs in the months ahead decreased slightly from 13.0% to 12.2%, while those anticipating fewer jobs edged up from 16.3% to 17.2%. The proportion of consumers expecting their incomes to increase declined from 16.9% to 15.9%; however, the proportion expecting a reduction in income also declined, from 12.3% to 11.2%.