Consumer Sentiment Drops in April
April 12, 2019
U.S. consumers are feeling less upbeat about the economy in April. The University of Michigan’s consumer sentiment index fell to 96.9 this month, down from March’s reading of 98.4. Economist had been expecting a reading of 98.0.
The month’s reading breaks the upward trend in the index, which was rebounding after seeing a sharp decline in January. The chief economist for the index noted that the decline may be due to the impact of the tax reform fading.
The index is based on a survey of consumers’ feelings about current and near-future economic conditions, so the index can be volatile from month to month. Still, the index can provide insight into consumers’ spending, which drives much of the economy and makes up a large portion of GDP.