© Reuters. U.S. consumer sentiment climbs to a new pandemic high in April
(Bloomberg) – US consumer sentiment continued to improve in late April, leading to signs that household spending will remain strong for the months to come.
The University of Michigan final sentiment index improved from 86.5 to 88.3 and from 84.9 in March, data released Friday showed. A mean survey of economists had asked for a value of 87.5.
Consumer confidence is building as vaccinations accelerate and more states and businesses reopen. According to a separate report on Friday, a third round of stimulus tests to combat pandemics will also boost personal income and create the conditions for the economy to receive additional impetus.
Expectations increased at the end of April, rising from a preliminary value of 79.7 to 82.7. According to surveys from March 24th to April 26th, the current level remained unchanged at 97.2 compared to the previous month.
“The biggest and most important change in the economic outlook in April was that a record number of consumers were expecting unemployment rates to decline in the coming year,” said Richard Curtin, director of the survey, in a report. “The data indicate an exceptional outlook.”
Around 64% of consumers indicated favorable developments in the economy, more than twice as many as in January. More respondents also reported employment increases.
Consumers expect inflation to rise 3.4% over the next year, compared to a preliminary estimate of 3.7%, the report said.
(Updates with diagram)
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