US consumer confidence drops to 21-month low

30th Apr 2024 15:27

(Sharecast News) - Consumer confidence in the United States unexpectedly weakened in April, according to data released on Tuesday by The Conference Board, as the public turned more pessimistic about future business conditions and the labour market.

The closely watched Conference Board Consumer Confidence Index declined for the third straight month to 97, from a downwardly revised 103.1 in March.

This was the lowest reading since July 2022 and missed the consensus forecast of 104.

However, despite three consecutive declines, the gauge has kept within a relatively narrow range, having moved broadly sideways for more than two years, The Conference Board said.

The Present Situation Index fell to 142.9 from 146.8, while the Expectations Index dropped to 66.4 from 74.0.

"Confidence retreated further in April, reaching its lowest level since July 2022 as consumers became less positive about the current labor market situation, and more concerned about future business conditions, job availability, and income," said Dana 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."