April 29, 2021
As of April 2021, the United States Consumer Confidence Index increased to 121.7, up from 109.0 recorded at the end of March 2021. Also, “the Present Situation Index, based on consumers’ assessment of current business and labor market conditions, soared from 110.1 to 139.6,” as per the Conference Broad. Moreover, “the Expectations Index, based on consumers’ short-term outlook for income, business, and labor market conditions, rose moderately, from 108.3 last month to 109.8 in April”, the US Conference Board indicated.
The Consumer Confidence has rebound sharply over the two months period, that is sustaining a sharp increase from the month of March. It was noted, “consumers’ assessment of current conditions improved significantly in April, suggesting the economic recovery strengthened further in early Q2. Consumers’ optimism about the short-term outlook held steady this month.” Notably, consumers were more upbeat about their income prospects, perhaps due to the improving job market and the recent round of stimulus checks. It is to be noted that short-term inflation expectations held steady in April but remain elevated. Vacation intentions posted a healthy increase, likely boosted by the accelerating vaccine rollout and further loosening of pandemic restrictions.
Furthermore, “the percentage of consumers claiming business conditions are “good” increased from 18.3% to 23.3%, while the proportion claiming business conditions are “bad” fell from 30.1% to 24.8%, ” according to the US Conference Board. Consumers’ assessment of the labor market also improved from 26.5% to 37.9%. “The percentage of consumers saying jobs are “plentiful” increased from 26.5% to 37.9%, while those claiming jobs are “hard to get” declined from 18.5 percent to 13.2 percent,” as per the Conference Broad.
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