Consumer confidence dipped again in April as anxiety over a slowing economy and possible recession weighed on American households.
The Conference Board reported Tuesday that its consumer confidence index fell to 101.3 in April from 104 in March. It’s the third time in four months that overall U.S. consumer confidence has declined.
Optimism about current economic conditions ticked up again, although consumers are less positive about the short-term future.
The index remains below 2022’s average level of 104.5.
The business research group’s present situation index—which measures consumers’ assessment of current business and labor market conditions—inched up to 151.1 from 148.9 last month.
The board’s expectations index—a measure of consumers’ six-month outlook for income, business, and labor conditions—fell to 68.1 this month from 74 in March. A reading under 80 often signals a recession in the coming year. The Conference Board noted that reading has come in below 80 every month but one since February of 2022.
Consumer spending, which makes up about 70 percent of U.S. economic activity, has remained strong despite the Federal Reserve raising interest rates nine straight times since March of last year in its effort to cool the economy and bring down persistent, four-decade high inflation.
Those rate increases can raise the cost of using credit cards or taking out a loan for a house, car, or other purchases.
U.S. consumer inflation eased in March, with less expensive gas and food providing some relief to households that have struggled under the weight of surging prices. But prices still point to an elevated inflation rate far above the Fed’s 2 percent target and the central bank is expected to raise its main borrowing rate when it meets next month.
The board said consumer expectations about inflation remain elevated.
