Consumer confidence has declined over the past three months, even as the Biden administration tries to convince Americans that the economy is improving.
The Conference Board’s Consumer Confidence Index fell to 97 in April from 103.1 in March, according to data released Tuesday. This is the third consecutive month of decline and the lowest figure since July 2022.
The decline left the index below even the most pessimistic expectations. Last month’s reading was revised downward from the preliminary figure of 104.7.
A measure of expectations for the next six months fell to 66.4, also the lowest level since July 2022. The current index has fallen to 142.9.
Dana M. Peterson, the paper’s chief economist, said, “Confidence is at 4.5% as consumers become less positive about current labor market conditions and become more concerned about the future economy, job availability, and income.” “It retreated further in March, reaching its lowest level since July 2022.” conference board.
Households surveyed expressed concerns about inflation, especially when it comes to essentials such as food and gasoline. The national average price of a gallon of regular gasoline has increased 3.4% over the past month, according to AAA. On Tuesday, it stood at $3.657, up from about $3 at the beginning of the year.
“Based on April write-in responses, rising price levels, particularly for food and gas, accounted for the majority of consumer concerns, with politics and global conflict a distant second,” Peterson said. .
Recent government data shows inflation has accelerated this year, reversing last year’s decline. Fed officials, who had been predicting three rate cuts in 2024 since the start of the year, have recently indicated that if they do happen at all because of rising inflation, they are likely to come later.
