NEW YORK, April 28 (Xinhua) — U.S. consumer confidence rose modestly in April despite growing anxiety over surging energy prices caused by the ongoing conflict in the Middle East, according to data released by The Conference Board on Tuesday.
The Consumer Confidence Index edged up to 92.8 in April from a revised reading of 92.2 in March. The Present Situation Index, which reflects consumers’ assessment of current business and labor market conditions, fell by 0.3 points to 123.8. Meanwhile, the Expectations Index, which measures consumers’ short-term outlook for income, business and employment, rose 1.2 points to 72.2.
“Consumer confidence edged up in April but was overall little changed, despite material concern about rising gasoline prices as the war in the Middle East prompted a surge in Brent crude oil prices,” said Dana Peterson, chief economist at The Conference Board.
“Consumer appraisals of current and expected business conditions declined moderately compared to last month. This was offset by modest improvements in consumers’ perceptions of the labor market, both current and expected, as well as income expectations, which were slightly more optimistic in April,” she said.
However, the University of Michigan’s Consumer Sentiment Index published Friday painted a more pessimistic picture, dropping to 49.8 in April from 53.3 in the previous month. This marks the lowest reading in the survey’s more-than-50-year history, falling below the previous low of 50 recorded in June 2022 during a period of intense inflation. A preliminary April reading of 47.6 had already signaled significant weakness.
Analysts noted that the war in the Middle East is beginning to exert serious pressure on global economies. “We’re not yet predicting a recession, but it’s going to hammer growth and increase inflation,” said Carsten Brzeski, global head of macro at ING. “Accurately predicting what’s going to happen next, however, is a fool’s game.”
The mixed consumer confidence readings come as markets continue to monitor diplomatic developments surrounding the Iran conflict, as well as the potential reopening of the Strait of Hormuz, which has driven oil prices higher and contributed to elevated inflationary pressures. ■
