US Consumer Sentiment Falls in April

The University of Michigan consumer sentiment for the US fell to 77.9 in April 2024 from 79.4 in March which was the highest level since July 2021, preliminary estimates showed.

Figures came well below forecasts of 79, with both current conditions (79.3 vs 82.5) and expectations (77 vs 77.4) declining.

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.

Meanwhile, inflation expectations increased for the year-ahead (3.1%, the highest in four months from 2.9% in March) and the five-year outlook (3%, the highest in six months, from 2.8%). It reflects some frustration that the inflation slowdown may have stalled.

The year-ahead inflation expectations in the United States rose to 3.1% in April 2024, the highest in four months, from 2.9% in the prior month, according to the preliminary estimate from the University of Michigan Consumer Survey.

In the meantime, the five-year outlook edged higher to 3% in April, the highest in four months, up from 2.8% in the previous month.