Yahoo Finanza April Consumer Sentiment Declines More Than Expected as Inflation Expectations Rise
US consumer sentiment decreased on a monthly basis in April, while inflation expectations ticked up, according to the University of Michigan's Surveys of Consumers released Friday.
The main sentiment gauge moved down to 77.2 this month from 79.4 in March, final data showed. The consensus was for a 77.9 reading in a survey compiled by Bloomberg. On an annual basis, the gauge is up about 21%.
"Republicans posted notable declines in sentiment this month, whereas Democrats and Independents did not," Surveys of Consumers Director Joanne Hsu said. "Sentiment for younger consumers rose, in contrast to middle-aged and older adults whose sentiment changed little or fell."
The index for current economic conditions declined 4.2% to 79 this month, while the expectations measure slipped 1.8% to 76, the survey showed.
Sentiment has "remained remarkably" steady since January, according to Hsu. The long-run business outlook inched up to reach its highest level since June 2021, while consumer views about personal finances softened, Hsu said.
Year-ahead inflation expectations increased to 3.2% in April from 2.9% the prior month. The five-year price growth outlook ticked up to 3% from 2.8%, according to the survey.
"Overall, consumers continue to express uncertainty about the future trajectory of the economy pending the outcomes of the upcoming election, but at this time there is no evidence that global geopolitical factors are on the forefront of consumers' minds," Hsu wrote.
The US economy grew at a slower-than-projected pace in the first quarter, while consumer spending growth eased sequentially amid rising inflationary pressures, according to an advance estimate released Thursday by the Bureau of Economic Analysis.
