Consumer confidence reaches 8-year high
Confidence among U.S. consumers reached its highest level in more than eight years, according to the University of Michigan’s Consumer Sentiment Index for April, released Friday.
The index rose to to 95.9 from a 93 in March. The index also recorded a higher average level during the last five months than any time since May 2004, the university said in a statement.
The statement said that while nearly two-thirds of consumers surveyed expect interest rates to rise this year, they expect only minimal increases. Further, consumers expect any increases to be “easily offset by the positive impact of expanding jobs and incomes.” While that trade-off accompanied rate hikes in the past, the statement said, “it has never been undertaken when interest rates have been so low for so long.”
Two other measures reported by the University of Michigan also showed increases. The Current Economic Conditions index, which measures consumers’ assessment of their personal finances, rose to 108.2 in April from 105 in March. Also, the Index of Consumer Expectations, which measures expectations for the six months ahead, rose to 88.8 in April, from March’s 85.3.
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