Consumer Confidence Index Surges to 39.2

The consumer confidence index, which climbed slightly in March, posted a considerable gain in April, rising to 39.2 from an upwardly revised 26.9 last month, the Conference Board reported yesterday.

The March index was initially reported as 26.0. Economists polled by Thomson Reuters predicted the index would rise to 29.5.

The present situation index fell to 23.7 from an upwardly revised 21.9, originally reported as 21.5, while the expectations index rose to 49.5 from an upwardly revised 30.2 last month, originally reported as 28.9.

“Consumer confidence rose in April to its highest reading in 2009, driven primarily by a significant improvement in the short-term outlook,” said Lynn Franco, director of board’s Consumer Research Center. “The present situation index posted a moderate gain, a sign that conditions have not deteriorated further, and may even moderately improve, in the second quarter. The sharp increase in the expectations index suggests that consumers believe the economy is nearing a bottom; however, this index still remains well below levels associated with strong economic growth.”

Business conditions were called “good” by 7.6% of respondents in April, an increase from 6.9% the prior month. Those saying conditions are “bad” slid to 45.7% from 51.0%.

The percentage of consumers expecting a pickup in business conditions in the next half year grew to 15.6% from 9.6%, while 25.3% said they expect conditions to worsen, down from 37.8% the prior month.

On the jobs front, those who believe jobs are “plentiful” declined to 4.5% in April from 4.7% in March, while the number saying jobs are “hard to get” decreased to 47.9% this survey from 48.8%. The respondents who see more jobs becoming available in a half year gained to 13.9% from 7.3%. Those expecting fewer jobs to become available slid to 33.6% from 41.6%, the Conference Board reported.

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