FX.co ★ U.S. Consumer Sentiment Dips More Than Previously Estimated In April

The University of Michigan's updated figures, released on Friday, indicated that consumer sentiment in the U.S. fell more than initially predicted in April.

The University's consumer sentiment index for April was adjusted downwards to 77.2 from an initial figure of 77.9. By comparison, economists expected no change from the original number which marked a dip from 79.4 in March.

Survey of Consumers Director, Joanne Hsu, commented that different demographics displayed contrasting trends this month. Republican sentiment saw a notable fall, while Democrats and Independents remained stable. On the other hand, there was an increase in sentiment among younger consumers, whereas middle-aged and older adults saw little change or fell slightly.

Hsu added that despite the continual uncertainty regarding the future economic path, largely dependent on the upcoming election outcomes, there is no evidence to suggest that insights from global geopolitical factors are impacting consumer sentiment at this point.

The drop in the headline index was largely due to the current economic conditions index falling to 79.0 in April, down from 82.5 in March. The consumer expectations index also dipped from 77.4 in March to 76.0 in April.

The report highlighted a slightly higher-than-initially-estimated increase in next year's inflation expectations, rising to 3.2 percent in April from 2.9 percent in March. The long-run inflation expectations also rose to 3.0 percent in April from 2.8 percent in March, whilst remaining elevated compared to 2.2-2.6 percent range seen in the pre-pandemic two years.