In a significant downturn, the Consumer Confidence Index in the United States plummeted to 97.0 in April, marking the lowest reading since July 2022. The sharp decline reflects weakening consumer sentiment amidst ongoing economic uncertainties. According to the Conference Board, the Present Situation Index, which gauges consumers' assessment of current business and labor market conditions, fell to 142.9 from a revised 146.8 in March.
Additionally, the Expectations Index dropped to 66.4 from 74.0, indicating waning optimism about future economic prospects. However, the 12-month inflation expectation remained stable at 5.3%, suggesting persistent concerns about rising prices. In response to the disappointing data, the US Dollar Index initially surged but later retreated from session highs, reflecting market volatility and uncertainty surrounding economic recovery.
The decline in consumer confidence underscores the challenges facing the US economy and highlights the need for continued monitoring of key economic indicators to assess the path forward.
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