MICHIGAN CONSUMER SENTIMENT INDEX FALLS SLIGHTLY IN APRIL, TRADE SPAT LIKELY TO DRAG ON SENTIMENT IN NEAR TERM
28 April 2018,
U.S. Michigan Consumer Sentiment Index dropped in the month of April. The index fell 2.6 points in the month, although the full month data came in a full point higher than the early month reading. Consumers’ assessment of current economic conditions accounted for practically all of the decline, falling 6.3 points in April to 114.9. Expectations for future economic conditions dropped just 0.4 points in the month to 88.4.
The trade spat with China and concerns regarding NAFTA negotiations might be a drag on consumer confidence in the near term, noted Wells Fargo in a research report. While concerns about trade might be a drag on views of current economic conditions, the gap between how consumers feel about the economy today and their expectations for future economic conditions continues to be wide. Given that the jobless rate is so low, fewer consumers anticipate the jobless rate to fall over the next year. The share that anticipate the unemployment rate to fall still continues to be slightly larger than the number anticipating the jobless rate to rise.
Meanwhile, over half of consumers believe their finances have rebounded in the past year, while just 19 percent state that their finances have deteriorated. The remaining 19 percent stated they felt their finances remained the same. The overwhelming majority of those citing improved finances noted that their income had risen in the past year. The number of households noting that assets had risen and debts fell also considerably outweighed the number stating that their assets had fallen and debts had risen.
At 21:00 GMT the FxWirePros Hourly Strength Index of US Dollar was neutral at -6.13125. For more details on FxWirePros Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
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