United States: Consumer confidence drops in April
April 28, 2015
The Conference Board consumer confidence index dropped to 95.2 points in April from a revised 101.4 points in March (previously reported: 101.3 points). April’s result significantly contrasted the 103.0 points expected by the market and represented the largest monthly loss in a year and a half.
April’s decrease in confidence was driven by a deterioration in consumers’ expectations regarding business conditions over the next six months and a weaker outlook on the future of the job market. Consumers were also less upbeat about current economic conditions.
The director of the Board explained that, “this month’s retreat was prompted by a softening in current conditions, likely sparked by the recent lackluster performance of the labor market, and apprehension about the short-term outlook. Coupled with waning expectations, there is little to suggest that economic momentum will pick up in the months ahead.”
Author: Carl Kelly, Economist