National & World News

Apr 26, 11:07 AM EDT

US consumer confidence slips in April


AP Photo
AP Photo/Alan Diaz

Multimedia
A district summary of the Beige Book
Measuring economic stress by county nationwide
Mall malaise: shoppers browse, but don't buy
Unemployment by the numbers
Family struggles with father's unemployment
Saying an affordable goodbye
Hard times hit small car dealer
Latest Economic News
Gov: Puerto Rico braces for lawsuits as major default looms

Eurozone economy at a glance: 2008 and now

Eurozone economy regains size of 2008 but remains shaky

US economy struggles at start of election year

Japan central bank holds fire on fresh monetary stimulus

Economic watchdog warns on UK leaving European Union

German consumer confidence amid strong domestic demand

South Korea's economy grows 2.7 percent, slowest since July

IMF expects $500B revenue loss for Mideast oil exporters

Egypt's pound flops on black market amid exchange crackdown

WASHINGTON (AP) -- U.S. consumers were feeling a little less confident in April, even though the stock market was rebounding from its February lows.

The Conference Board said Tuesday its consumer confidence index dropped to 94.2 this month after rising to 96.1 in March.

The April report showed confidence on a sideways path, with modest progress in one month followed by a slight retreat in the following month.

Consumers' assessment of current conditions improved in April, which could suggest that the economy is growing at a stable pace. But their expectations for the future fell to a two-year low.

Paul Ashworth, chief U.S. economist at Capital Economics said that the recent rise in gasoline prices seemed to be offsetting the rebound that has occurred in the stock market.

"Consumer confidence has trended lower in recent months, but the fundamentals for consumption remain encouraging," Ashworth said.

He noted that the labor market remains strong, interest rates are low and the price of such key household assets such as homes and stocks were on the rise.

Ashworth said the reading for consumer confidence was consistent with consumer spending growing at around a 2 percent rate, an improvement over the 1.5 percent spending growth he has forecast for the first quarter.

Economists closely watch consumer spending because it accounts for 70 percent of economic activity.

The confidence gauge is based on an index where 100 was the reading in 1985.

© 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms of Use.

 

HamptonRoads.com

PilotOnline.com