Consumer confidence drops to lowest level in nearly two years
By
Zachary Halaschak
April 30, 2024 12:36 pm
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Consumer confidence in April fell well short of expectations, dropping to its lowest level in nearly two years as people expressed some growing pessimism about the economy.
The Conference Board’s consumer confidence index fell to 97 in April, down from a revised 103.1 the month before, the group announced on Tuesday. That is the lowest consumer confidence reading in 22 months.
Tuesday’s report marks the third month of declining consumer confidence. Economists had expected consumer confidence to rise to 104, so the latest reading is a big miss and bad news for President Joe Biden and Democrats, who are working to shore up perceptions of their economic stewardship in a critical election year.
The expectations index, which tracks the short-term outlook of consumers for business, income, and labor market conditions, fell to 66.4 this month from 74 in March. An expectations index reading below 80 often signals a forthcoming recession, according to the Conference Board.
“Confidence retreated further in April, reaching its lowest level since July 2022 as consumers became less positive about the current labor market situation and more concerned about future business conditions, job availability, and income,” said Dana Peterson, chief economist at the Conference Board.
The drop in consumer confidence was observed across all age groups in the survey and almost all income groups. Younger consumers, those under 35, expressed greater confidence than those over 35. Those with incomes below $25,000 annually and above $75,000 reported the biggest declines in confidence.
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https://www.washingtonexaminer.com/policy/finance-and-economy/2984808/consumer-confidence-drops-lowest-level-nearly-two-years/
