US Consumer Confidence Up Sharply Again in April
The Consumer Confidence Index rose to 121.7 in April, significantly up from 109.0 in March. The Present Situation Index soared from 110.1 to 139.6, reflecting improved assessments of current business and labor conditions. Optimism about short-term income prospects also increased, with 17.9% of consumers expecting income growth, up from 15.4%. The data, sourced from a survey conducted by Nielsen for The Conference Board, indicates a strong economic recovery as consumer confidence reached levels not seen since February 2020.
- Consumer Confidence Index increased from 109.0 in March to 121.7 in April.
- Present Situation Index improved sharply from 110.1 to 139.6, indicating better current conditions.
- 17.9% of consumers expect income growth in the next six months, up from 15.4%.
- Proportion expecting more jobs decreased slightly from 35.9% to 34.5%.
- Those anticipating fewer jobs rose from 14.4% to 15.5%.
NEW YORK, April 27, 2021 /PRNewswire/ -- The Conference Board Consumer Confidence Index® rose sharply again in April, following a substantial gain in March. The Index now stands at 121.7 (1985=100), up from 109.0 in March. The Present Situation Index—based on consumers' assessment of current business and labor market conditions—soared from 110.1 to 139.6. The Expectations Index—based on consumers' short-term outlook for income, business, and labor market conditions—rose moderately, from 108.3 last month to 109.8 in April.
The monthly Consumer Confidence Survey®, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a leading global provider of information and analytics around what consumers buy and watch. The cutoff date for the preliminary results was April 16.
"Consumer confidence has rebounded sharply over the last two months and is now at its highest level since February 2020," said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. "Consumers' assessment of current conditions improved significantly in April, suggesting the economic recovery strengthened further in early Q2. Consumers' optimism about the short-term outlook held steady this month. Consumers were more upbeat about their income prospects, perhaps due to the improving job market and the recent round of stimulus checks. Short-term inflation expectations held steady in April, but remain elevated. Vacation intentions posted a healthy increase, likely boosted by the accelerating vaccine rollout and further loosening of pandemic restrictions."
Consumers' appraisal of current conditions improved significantly in April. The percentage of consumers claiming business conditions are "good" increased from 18.3 percent to 23.3 percent, while the proportion claiming business conditions are "bad" fell from 30.1 percent to 24.8 percent. Consumers' assessment of the labor market also improved. The percentage of consumers saying jobs are "plentiful" increased from 26.5 percent to 37.9 percent, while those claiming jobs are "hard to get" declined from 18.5 percent to 13.2 percent.
Consumers' optimism about the short-term outlook improved moderately. The percentage of consumers expecting business conditions to improve over the next six months rose marginally, from 40.3 percent to 40.5 percent, while the proportion expecting business conditions to worsen stood relatively unchanged at 11.9 percent. Consumers' outlook regarding the job market was slightly less upbeat. The proportion expecting more jobs in the months ahead fell from 35.9 percent to 34.5 percent, while those anticipating fewer jobs rose from 14.4 percent to 15.5 percent. Regarding short-term income prospects, 17.9 percent of consumers expect their incomes to increase in the next six months, up from 15.4 percent in March. Those expecting their incomes to decrease fell to 10.9 percent, down from 12.6 percent.
Source: April 2021 Consumer Confidence Survey®
The Conference Board / Release #8072
The Conference Board publishes the Consumer Confidence Index® at 10 a.m. ET on the last Tuesday of every month. Subscription information and the technical notes to this series are available on The Conference Board website: https://www.conference-board.org/data/consumerdata.cfm.
About The Conference Board
The Conference Board is the member-driven think tank that delivers trusted insights for what's ahead. Founded in 1916, we are a non-partisan, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.conference-board.org.
About NIELSEN
Nielsen Holdings plc (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers watch and buy. Nielsen's Watch segment provides media and advertising clients with Total Audience measurement services for all devices on which content — video, audio and text — is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry's only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen also provides its clients with analytics that help improve performance. Nielsen, an S&P 500 company, has operations in over 100 countries, covering more than 90 percent of the world's population. For more information, visit www.nielsen.com.
View original content to download multimedia:http://www.prnewswire.com/news-releases/us-consumer-confidence-up-sharply-again-in-april-301278044.html
SOURCE The Conference Board
FAQ
What was the Consumer Confidence Index for April 2021?
What does the increase in the Present Situation Index indicate?
How has consumer optimism regarding income prospects changed in April 2021?
What does the Consumer Confidence Index's rise signify for the economy?
How are job market perceptions reflected in the Consumer Confidence Index?
