Consumer Sentiment Reports Optimistic Readings For April
Consumer sentiment rose in April to 69.8 after a more pessimistic reading of 67.5 in March. Reuters accounted for the increase in optimism a result of the gas prices views as temporary. The survey reported that “complaints about high prices were the most frequent since 2008 and half of all households said their finances had worsened.”
Real income expectations remained unchanged due to expected wage gains to counteract the higher gas and food prices. The current economic conditions stayed the same as March, but consumer expectations rose from 57.9 to 61.6. April saw the same one-year inflation expectation at 4.6%, the highest level since 2008. However, the five-to-10-year inflation outlook decreased from 3.2% to 2.9% for April.
“Separate data earlier on Friday showed rising gasoline and food prices lifted U.S. consumer spending in March and the increase in overall inflation from a year-ago was the largest in 10 months,” according to Reuters.