The final reading for the February Reuters/Michigan index of consumer
sentiment came in at 63.5 in April compared to the flash reading of 63.5 and
the March final reading of 62.0.
Economists had predicted the indicator to remain unrevised at 63.5.
The details of the latest Surveys of Consumers of the University of
Michigan showed that the index of current economic conditions jumped 2.9 percent
m-o-m to 68.2 this month, while the index of consumer expectations climbed 2.2
percent m-o-m to 60.5.
The report also revealed that the estimates of year-ahead expected
inflation surged from 3.6 percent in March to 4.6 percent in March, in line
with the preliminary estimates. That was the highest reading since November 2022 (4.9
percent). Meanwhile, the 5-year inflation expectations increased from 2.9 percent in March to 3.0
percent, compared to the preliminary estimate of 2.9 percent. That was the highest
reading since November 2022 (3.0 percent).
Commenting on the latest results, Joanne Hsu, Surveys of Consumers
Director, noted that consumers’ short- and long-run economic outlook improved
modestly in April, despite the increasingly negative news on business
conditions. She added, however, that these improvements were offset by
worsening assessments of personal finances due to increased expenses, reflecting
the ongoing pain stemming from continued high prices.