U.S. Consumer Sentiment Index Drops More Than Expected In April
(RTTNews) - After reporting a notable improvement in U.S. consumer sentiment in the previous month, the University of Michigan released a report on Friday showing sentiment has deteriorated by more than anticipated in the month of April.
The preliminary report showed the consumer sentiment index dropped to 96.9 in April from the final March reading of 98.4. Economists had expected the index to edge down to 98.0.
The bigger than expected decrease by the headline index reflected less optimism about the economic outlook, as the index of consumer expectations slid to 85.8 in April from 88.8 in March.
On the other hand, the report said the current economic conditions index inched up to 114.2 in April from 113.3 in the previous month.
Surveys of Consumers chief economist Richard Curtin described the decrease by the consumer sentiment as "insignificant," saying, Consumer confidence continued its sideways shuffle in early April."
"Overall, the level of the Sentiment Index during the past 30 months was higher than any other time since 1997 to 2000, the final phase of the record 10-year expansion," Curtin said.
With regard to inflation, one-year inflation expectations edged down to 2.4 percent in April from 2.5 percent in March and five-year inflation expectations dipped to 2.3 percent from 2.5 percent.