Consumer sentiment in the U.S. has deteriorated by more than expected in the month of April, according to preliminary data released by the University of Michigan on Friday.
The University of Michigan said its consumer sentiment fell to 77.9 in April from 79.4 in March. Economists had expected the index to edge down to 79.0.
The bigger than expected drop by the headline reflected a notable decline in consumers’ assessment of current economic conditions, with the current economic conditions index sliding to 79.3 in April from 82.5 in March.
The index of consumer expectations showed a more modest decrease, edging down to 77.0 in April from 77.4 in March.
The report also said year-ahead inflation expectations rose to 3.1 percent in April from 2.9 percent in March, climbing just above the 2.3-3.0 percent range seen in the two years prior to the pandemic.
Long-run inflation expectations also increased to 3.0 percent in April from 2.8 percent in March, the University of Michigan said.
Surveys of Consumers Director Joanne Hsu said the uptick in inflation expectations reflects “some frustration that the inflation slowdown may have stalled.”
“Overall, consumers are reserving judgment about the economy in light of the upcoming election, which, in the view of many consumers, could have a substantial impact on the trajectory of the economy,” she added.
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