US consumer sentiment, which measures Americans’ assessment of their personal finances, rose higher than expected in April, based on a University of Michigan survey released Friday. Analysts were hoping to see a rating of 94 in April, after a March rating of 93. Preliminary results for April rises the rating to 95.9. The survey did a reading of consumer expectations, and it rose, as well, to 88 from 85.3 in March. “Although the leading economic index still points to a moderate expansion in economic activity, its slowing growth rate over recent months suggests weaker growth may be ahead,” said Ataman Ozyildirim, Economist at The Conference Board, in a statement.
However, this is the second-highest level of consumer confidence in more than eight years. The report “is encouraging given that the March payroll report was a little bit weaker and some of the other data around the consumer has been softer,” said Michelle Meyer, deputy head of U.S economics at Bank of America Corp. in New York. “The fact that consumers are feeling better hopefully will translate into greater expenditures over time and that’s been a missing link to the economic recovery this year.”
Sources: CNBC, MarketWatch, Bloomberg
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