Consumer sentiment posted a surprise double-digit growth in April, driven mainly by improved expectations for the coming year.
The Index of Consumer Sentiment clocked in at 65.7 in April, reflecting a 10.6% increase from the 59.4 in March but indicating a 25.6% decline from the same month in 2021.
Source: University of Michigan
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The current economic conditions indicator climbed 1.3% to 68.1 from 67.2 the previous month, while the index of consumer expectations surged by 18.0% to 64.1 from 54.3 in March.
Chief Economist Richard Curtin attributed the growth to the expectations index, as the economic outlook for the coming year leaped by 29.4%, while personal financial expectations jumped by 17.2%.
The higher outlook for the national economy is on the back of expectations that employment figures will improve, as they also expect a year-ahead growth of just 0.4 cents in April.
Curtin flagged the minimal gain in sentiment, which remains close to recession lows.