Conference Board April Consumer Confidence Index Rises to 68.1

The consumer confidence index climbed to 68.1 in April from an upwardly revised 61.9 last month, The Conference Board reported Tuesday.

The March index was originally reported as 59.7.

The present situation index grew to 60.4 from an upwardly revised 59.2, originally reported as 57.9, while the expectations index soared to 73.3 from an upwardly revised 63.7, originally reported as 57.9.

Economists polled by Thomson Reuters predicted a 61.0 reading for the index.

"Consumer confidence improved in April, as consumers' expectations about the short-term economic outlook and their income prospects improved," said Lynn Franco, director of The Conference Board's Consumer Research Center. "However, consumers' confidence has been challenged several times over the past few months by such events as the fiscal cliff, the payroll tax hike and the sequester. Thus, while expectations appear to have bounced back, it is too soon to tell if confidence is actually on the mend."

Business conditions were called "good" by 17.2% of respondents in April, up from 16.4% in March. Those saying conditions are "bad" slid to 28.1% from 29.1%.

The percentage of consumers expecting a pickup in business conditions in the next half year rose to 16.9% from 15.0%, while 15.1% said they expect conditions to worsen, down from 17.7% the prior month.

On the jobs front, those who believe jobs are "plentiful" climbed to 9.8% in April from 9.5% in March, while the number saying jobs are "hard to get" rose to 37.1% from 35.4%. The respondents who see fewer jobs becoming available in a half year, decreased to 22.4% from 26.0%. Those expecting more jobs to become available gained to 14.2% from 13.0%, The Conference Board reported.

Income expectations were better, with 16.8% of consumers anticipating an increase in their income in the next six months, up from the prior month's 14.6%, while 16.0% expect their income to decrease, down from 17.7% in the prior month's survey.

The number of consumers who expected to buy a home in the next six months remained at 5.6%, while the number of respondents planning to buy a car dipped to 10.6% from 10.8%. Fewer consumers than last month said they plan to buy a major appliance in the next six months (46.6% vs. 47.2%).

Fewer respondents than last month (42.1% vs. 43.7%) expect to take a vacation in the next six months, but more said they would stay in the U.S. rather than leave the country. Airplanes rather than cars were the preferred mode of travel, by a 21.9%-21.2% margin.

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