Last Update: 17-Apr-15 10:19 ET
- The University of Michigan Consumer Sentiment Index increased to 95.9 in the preliminary April reading from 93.0 in March. The Briefing.com Consensus expected the Consumer Sentiment Index to increase to 94.0.
- Consumer sentiment recovered all of the March decline from February (95.4) despite relatively higher gasoline costs and a significant weakening in the latest payrolls data.
- The Current Conditions Index increased to 108.2 in April from 105.0 in March. The Expectations Index increased to 88.0 from 85.3.
- The improvement in sentiment does not necessarily foreshadow upcoming changes to consumption trends. Consumption follows income growth. An acceleration in income is far more likely to bring about an acceleration in consumption than an improvement in sentiment.
- Consumer sentiment has little influence on consumption. As long as payroll levels continue to expand, the resulting income growth should keep consumption gains steady regardless of the monthly ebbs and flows in sentiment.