US consumer confidence declines for 3rd consecutive month in April

The supplemental question revealed a shift in spending priorities, with discretionary purchases like clothing and fashion items topping the list of potential cutbacks to save money.

The present situation index, reflecting current business and labour market conditions, decreased to 142.9, while the expectations index, based on short-term outlook, fell to 66.4. Consumers' assessments of the present situation weakened slightly, particularly regarding employment prospects, while expectations for the next six months also soured, driven by concerns over future business conditions, labour market, and income expectations, as per TCB.

Additionally, expectations for stock prices declined slightly, while more consumers anticipated higher interest rates. Buying plans decreased, indicating softening consumer sentiment.

In April, consumers viewed current business conditions more positively, but their assessment of the labour market deteriorated. Looking ahead, expectations for short-term business conditions, labour market, and income prospects worsened, suggesting growing pessimism among consumers about the economic outlook.

“Confidence retreated further in April, reaching its lowest level since July 2022 as consumers became less positive about the current labour market situation, and more concerned about future business conditions, job availability, and income,” said Dana M Peterson, chief economist at The Conference Board. “Despite April’s dip in the overall index, since mid-2022, optimism about the present situation continues to more than offset concerns about the future."

Fibre2Fashion News Desk (DP)