surprise rebound in consumer confidence in April

U.S. consumer confidence unexpectedly rebounded in April as the outlook for jobs and wages was positive, but the level remains very low, according to the University of Michigan survey’s preliminary estimate released Thursday. The index measuring confidence jumped 10.6% in April from March, and climbed to 65.7 points, surprising analysts who expected a further drop in confidence and saw the index fall to 58 .8 dots. However, the rebound was not enough to lift the index from its 10-year lows, which it has recorded since the start of the year.

In detail, the perception of the current situation has increased little (+1.3%, to 68.1 points), and the “almost all» of the increase is linked to the progression of the index measuring the prospects (+18% to 64.1 points), according to the press release. “A strong labor market pushed the wage outlook for consumers under 45 up to 5.3% – the biggest gain expected in more than three decades, since April 1990“, specifies in the press release Richard Curtin, the economist in charge of this survey very followed by the markets.

However, he warns,there are still significant sources of economic uncertainty that could easily reverse April’s rise, including the impact on the national economy of Putin’s war and the potential impact of new variants of Covid“. And inflation in the United States is now at its highest in more than 40 years, reaching 8.4% in March, according to the CPI index.

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