The University of Michigan today announced the Consumer Confidence Index stood at 97.2 in April. Analysts at Wells Fargo explained consumer sentiment moderated, but the still high sentiment reading confirms the recent weakness in consumer spending was a soft patch. They noted consumers remain optimistic about their finances and job prospects.
Key Quotes:
“After a weak run in data, the consumer has regained some footing. Retail sales rebounded 1.6% in March, while consumer sentiment rose to its highest level since October over that month.”
“Sentiment has since moderated only slightly to 97.2 in April”” still consistent with solid consumer spending. This morning we learned Q1 GDP grew 3.2%. But, the drop in April sentiment was reflective of weaker prospects of economic growth later this year.”
“The S&P 500 index reached an all-time high this week, and is up nearly 25% since bottoming in December. Recent market strength may boost sentiment in coming months.”
“Consumers’ inflation expectations remain broadly anchored.”
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