US Consumer Confidence Jumps As Fuel Prices Come Off Highs - UMich Survey

US consumer confidence appears to have risen in April as fuel prices came off record highs to encourage Americans to reconsider purchases they might have thought of dropping just a month earlier, the University of Michigan (UMich) said in its survey of consumers

WASHINGTON (UrduPoint News / Sputnik - 14th April, 2022) US consumer confidence appears to have risen in April as fuel prices came off record highs to encourage Americans to reconsider purchases they might have thought of dropping just a month earlier, the University of Michigan (UMich) said in its survey of consumers.

"Retail gas prices have fallen since the March peak, and that fact was immediately recognized by consumers," Richard Curtin, chief economist of the UMich Consumer Surveys, said in a news release. "Perhaps the most surprising change was that consumers anticipated a year-ahead increase in gas prices of just 0.4 cents in April, completely reversing March's surge to 49.6 cents."

The pump price of gasoline in the United States averaged $4.07 per gallon on Thursday, down from record highs of above $4.30 last month.

The UMich Consumer Sentiment Index showed a reading of 65.7 for early April, up from 59.4 in March.

"Nearly the entire gain was in the Expectations Index, which posted a monthly gain of 18.0%, including a leap of 29.4% in the year-ahead outlook for the economy and a 17.2% jump in personal financial expectations," Curtin said.

He said a strong labor market bolstered wage expectations among consumers under the age of 45.

"Consumers still anticipate that the national unemployment rate will inch downward, acting to improve consumers' outlook for the national economy," Curtin added.

The White House said last week that over a four-week period, fewer Americans filed jobless claims than at any time in US history. Hourly earnings for workers have also grown almost without stop over the past year.

Curtin, however, cautioned that Umich's April survey offered only tentative evidence of stronger consumer sentiment to come, with multiple uncertainties remaining.

The US economy "is still too close to recession lows, to be reassuring," Curtin said, adding that uncertainties include more fallout from the Russia-Ukraine conflict and potential impact from new coronavirus variants.

After contracting 3.5% in 2020 from disruptions forced by the COVID-19, the US economy expanded by 5.7% in 2021, growing at the fastest pace since 1982.

However, inflation grew at the fastest pace in four decades. The Consumer Price Index expanded by 7% in the year to December and 8.5.% in the 12 months to March.