U.S. consumer confidence fell in April to the lowest since mid-2022 as Americans’ views of the labor market and their outlook for the economy deteriorated.
The Conference Board’s gauge of sentiment decreased to 97 from a downwardly revised 103.1 in March, data out Tuesday showed. The figure marked the third straight decline and trailed all estimates in a Bloomberg survey of economists.
A measure of expectations for the next six months fell to 66.4, also the lowest since July 2022. The measure of present conditions declined to 142.9.
Confidence now stands at the lower end of its recent range as consumers contend with elevated inflation, high borrowing costs and a gradually cooling labor market. Another metric of sentiment has similarly been moving sideways as voters await November’s outcome for direction on the economy.
“Consumers became less positive about the current labor market situation, and more concerned about future business conditions, job availability and income,” Dana Peterson, chief economist at the Conference Board, said in a statement.
While inflation expectations remained stable, consumer concerns were “dominated” by elevated prices for food and gas, Peterson said.
Americans’ view of the labor market weakened. A smaller share of consumers said jobs were “plentiful” and more said they were “hard to get.” The difference between these two — a metric closely followed by economists to gauge labor-market strength — fell to the lowest since November.
The outlook for the job market also worsened. The share of respondents who expect more jobs to be available in the next six months fell to the lowest since 2011. Their income expectations deteriorated as well.
That could be a worrisome sign for consumer spending. Nearly half of respondents said they would cut back on dining out to save money in the next six months, while others also cited clothing and entertainment as areas to reduce or eliminate spending, according to a special survey question.
That was mirrored in weaker buying plans for cars, homes and appliances. Intentions to take a vacation also fell.
A report earlier Tuesday showed a broad gauge of U.S. labor costs closely watched by the Fed accelerated in the first quarter by more than forecast, illustrating persistent wage pressures that are keeping inflation elevated.
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