United States consumer confidence rose modestly in April, reaching its highest level so far this year as improved sentiment around the labour market offset persistent concerns about inflation and energy prices.
The Conference Board Consumer Confidence Index increased by 0.6 points to 92.8, up from a revised 92.2 in March.
The reading surpassed market expectations of 89, indicating resilience in household sentiment despite ongoing geopolitical uncertainty.
The improvement was driven largely by stronger consumer expectations for employment prospects and income growth. The Conference Board noted that the survey period coincided with a temporary two-week ceasefire in the U.S. conflict with Iran, which has since been extended indefinitely, providing a degree of short-term stability.
“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 M Peterson, Chief Economist, 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 labour market, both current and expected, as well as income expectations, which were slightly more optimistic in April.”
Despite the headline improvement, underlying sentiment remained fragile. The Conference Board highlighted that written responses to the survey continued to reflect a cautious tone, with many consumers expressing concern about rising prices, fuel costs and the ongoing conflict.
This more subdued outlook contrasts with findings from the University of Michigan’s Index of Consumer Sentiment, which remains at a record low amid the geopolitical backdrop and inflationary pressures.
Labour market dynamics, however, provided a key source of support. Consumers reported a more positive assessment of job availability following a decline in the unemployment rate in March and stronger-than-expected job creation, with the economy adding 178,000 positions during the month.
The Conference Board also pointed to an increase in its labour market differential - the gap between respondents who view jobs as plentiful versus those who see them as hard to get.
Both current and forward-looking perceptions of employment conditions improved, reinforcing the view that the labour market remains a pillar of economic stability.
