US consumer confidence had been under pressure in recent months, at least until recently, and less-confident households are generally inclined to spend less and save more. As private consumption expenditures account for a majority of GDP in advanced economies, household spending is a major determinant of a country’s overall expenditure/income. While fears regarding US growth prospects are prevalent, the latest consumer survey indicates household confidence has stabilised after a short, sharp drop and subsequent recovery in the first months of 2019.
The latest survey conducted by the University of Michigan indicates confidence levels of US households remain at elevated levels. The University’s Index of Consumer Sentiment result dropped back from March’s revised figure of 98.4 to 96.9 in April, less than the market estimate of 98. Westpac’s Finance AM team described the index at “still overall very healthy levels”.
The University of Michigan’s index is one of two monthly US consumer sentiment indices, the other being the Conference Board’s Consumer Confidence Survey. The University’s survey covers personal finances, business conditions and buying conditions.
