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Home / World News / US consumer sentiment declines in April, inflation expectations rise
US consumer sentiment declines in April, inflation expectations rise
The University of Michigan's preliminary reading on the overall index of consumer sentiment came in at 77.9 this month, compared to a final reading of 79.4 in March
The survey's reading of one-year inflation expectations increased to 3.1% in April from 2.9% in March, rising just above the 2.3-3.0% range seen in the two years before the Covid-19 pandemic. Photo: Reuters
US consumer sentiment ebbed in April while inflation expectations for the next 12 months and beyond increased, a survey showed on Friday.
The University of Michigan's preliminary reading on the overall index of consumer sentiment came in at 77.9 this month, compared to a final reading of 79.4 in March.
Since January, the sentiment index has remained within a very narrow 2.5 point range, well under the 5 points which the University of Michigan said was necessary for a statistically significant difference in readings. Economists polled by Reuters had forecast a preliminary reading of 79.0.
"Overall, consumers are reserving judgment about the economy in light of the upcoming election, which, in the view of many consumers, could have a substantial impact on the trajectory of the economy," said Surveys of Consumers Director Joanne Hsu in a statement.
The survey's reading of one-year inflation expectations increased to 3.1% in April from 2.9% in March, rising just above the 2.3-3.0% range seen in the two years before the Covid-19 pandemic. The survey's five-year inflation outlook rose to 3.0% from 2.8% in the prior month.