Consumer Confidence takes a dive
Ninety points. That's the month-over-month decline in the Present Situation Index, and that's the largest drop on record -- from 166.7 in March to 76.4 in April. The number reflects the "sharp contraction in economic activity and surge in unemployment claims brought about by the COVID-19 crisis," said Lynn Franco, senior director of economic indicators at The Conference Board.
Meanwhile, the Consumer Confidence Index accelerated its dive in in April, falling to 86.9 from 118.8.
However, the Expectations Index – based on consumers’ short-term outlook for income, business and labor market conditions – improved from 86.8 in March to 93.8 this month.
“Consumer confidence weakened significantly in April, driven by a severe deterioration in current conditions,” said Franco.
As for the gain in the Expectations Index, Franco said the improvement was "likely prompted by the possibility that stay-at-home restrictions will loosen soon, along with a re-opening of the economy. However, consumers were less optimistic about their financial prospects, and this could have repercussions for spending as the recovery takes hold. The uncertainty of the economic effects of COVID-19 will likely cause expectations to fluctuate in the months ahead.”
Meanwhile, the Consumer Confidence Index accelerated its dive in in April, falling to 86.9 from 118.8.
However, the Expectations Index – based on consumers’ short-term outlook for income, business and labor market conditions – improved from 86.8 in March to 93.8 this month.
“Consumer confidence weakened significantly in April, driven by a severe deterioration in current conditions,” said Franco.
As for the gain in the Expectations Index, Franco said the improvement was "likely prompted by the possibility that stay-at-home restrictions will loosen soon, along with a re-opening of the economy. However, consumers were less optimistic about their financial prospects, and this could have repercussions for spending as the recovery takes hold. The uncertainty of the economic effects of COVID-19 will likely cause expectations to fluctuate in the months ahead.”