U.S. Consumer Confidence Index Unexpectedly Inches Higher In April

(RTTNews) - Despite spiking gasoline prices, the Conference Board released a report on Tuesday showing an unexpected improvement in U.S. consumer confidence in the month of April.

The Conference Board said its consumer confidence index crept up to 92.8 in April from an upwardly revised 92.2 in March.

Economists had expected the consumer confidence index to drop to 89.4 from the 91.8 originally reported for the previous month.

"Consumer confidence edged up in April but was overall little changed, despite material concern about rising gasoline prices as the war in the Middle East prompted a surge in Brent crude oil prices," said Dana M Peterson, Chief Economist, The Conference Board.

The Conference Board noted the survey period included the temporary two-week ceasefire in the Middle East conflict beginning April 8th and the subsequent rebound in U.S. equities.

The report said the expectations index also rose to 72.2 in April from 71.0, while the present situation edged down to 123.8 in April from 124.1 in March.

"Consumer appraisals of current and expected business conditions declined moderately compared to last month," said Peterson.

She added, "This was offset by modest improvements in consumers' perceptions of the labor market, both current and expected, as well as income expectations, which were slightly more optimistic in April."

Revised data released by the University of Michigan last Friday showed consumer sentiment in the U.S. deteriorated by less than previously estimated in April but still hit a record low.

The University of Michigan said its consumer sentiment index for April was upwardly revised to 49.8 from the preliminary reading of 47.6. Economists had expected the index to be unrevised.

Despite the upward revision, the consumer sentiment index is still down from 53.3 in March and at its lowest reading on records going back to 1952.