Keeping you up to date on the latest data releases.
- Consumer Sentiment
The University of Michigan’s Index of Consumer Sentiment slipped 4.1 points (largest decline since July 2009) in April to 69.5 according to the preliminary report. The index is only 4.4 points above its year-ago level and 4.9 points below January’s recent high of 74.4. Both components of the index contributed to its decline, with current conditions dropping 1.7 points and consumer expectations declining 5.6 (largest drop since February 2009). While sentiment has shown considerable improvement from the recession lows recorded more than a year ago, it has moved horizontally during the past six months with only small monthly variations. According to the release, consumers think the overall economy will continue to improve, however they still hold negative views on their own income and job prospects. Inflation expectations were little changed from March. One-year-ahead average inflation expectations ticked up 0.4 percentage point to 3.8 percent in April, while the longer-run (5- to 10-year-ahead) expectations also increased 0.1 percentage point to 3.2 percent.