NEW YORK - The consumer confidence index jumped to 57.9 in April from a downwardly revised 52.3 last month, The Conference Board reported this morning.
The March index was originally reported as 52.5.
Economists polled by Thomson Reuters predicted the index would be 71.0.
The present situation index climbed to 28.6 from a downwardly revised 25.2, originally reported as 26.0, while the expectations index increased to 77.4 from an upwardly revised 70.4 last month, originally seen as 70.2.
“Consumer confidence, which had rebounded in March, gained further ground in April,” said Lynn Franco, director of The Conference Board's Consumer Research Center. “The index is now at its highest reading in about a year and a half (September 2008, 61.4). Consumers’ concerns about current business and labor market conditions eased again. And, their outlook regarding business conditions and the labor market was also more positive than last month. Looking ahead, continued job growth will be key in sustaining positive momentum.”
Business conditions were called “good” by 9.1% of respondents in April, an increase from 8.5% the prior month. Those saying conditions are “bad” fell to 40.2% from 42.1%.
The percentage of consumers expecting a pickup in business conditions in the next half year grew to 19.8% from 18.0%, while 12.6% said they expect conditions to worsen, down from 13.6% the prior month.
On the jobs front, those who believe jobs are “plentiful” increased to 4.8% in April from 4.0% in March, while the number saying jobs are “hard to get” decreased to 45.0% this survey from 46.3%. The respondents who see more jobs becoming available in a half year, rose to 18.0% from 14.1%. Those expecting fewer jobs to become available dipped to 20.0% from 21.4%, The Conference Board reported.
Income expectations were mixed, with 10.3% of consumers anticipating an increase in their income in the next six months, down from the prior month's 10.8%, while 16.5% expect their income to decrease, off from 17.4% in the prior month’s survey.
The number of consumers who expected to buy a home in the next six months dropped to 2.0% from 2.8%, while the number of respondents planning to buy a car soared to 5.1% from 3.9%. More consumers than last month said they plan to buy a major appliance in the next six months (27.4% vs. 25.5%).
More respondents than last month (37.6% vs. 36.9%) 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. Cars rather than airplanes were the preferred mode of travel, by a 20.1%-17.6% margin.
The consumer confidence survey is based on a representative sample of 5,000 U.S. households for The Conference Board by TNS.
