U.S. consumer confidence brightens on job outlook -
Tuesday, April 27, 2004 3:33:43 PM
afxpress.com
WASHINGTON (AFX) -- U.S. consumer confidence improved for the first time in four months in April, aided by a brighter job outlook, the Conference Board reported Tuesday
The consumer confidence index improved to 92.9 in April from 88.5 in March. The present situation index increased from 84.4 to 90.6, the highest reading since August 2002. Meanwhile, the expectations index reached 94.5 from 91.3. The number of Americans who say jobs are hard to get fell to its lowest level since November 2002
Wall Street economists had expected the March confidence index to remain steady at about 88.7, according to a survey conducted by CBS MarketWatch. "This latest improvement in consumer confidence was sparked by a more favorable assessment of current business and labor market conditions and increased consumer optimism about the next six months," said Lynn Franco, director of the board's consumer research center. "The job market, which has a major impact on confidence, appears to be gaining strength." The percentage of respondents who told the Conference Board that jobs are hard to get fell to 27.6 percent from 29.9 percent, while those who say jobs are plentiful rose to 15.8 percent from 14.7 percent
The percentage who say business conditions are improving rose to 21.4 percent from 20.7 percent, while the percentage who say conditions are worsening fell to 22 percent from 23.1 percent
The confidence index doesn't necessarily predict consumer behavior. Consumer spending accelerated even as confidence sagged in the winter. In a separate report, the National Association of Realtors said sales of existing homes rose 5.7 percent to an annual rate of 6.48 million in March, far ahead of the 6.18 million that had been expected.
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