USA: UMich index falls more sharply than expected

(CercleFinance.com) - U.
S. consumer confidence worsened more than expected in April, according to the first results of the University of Michigan's monthly survey published this Friday.

The confidence index stood at 77.9 this month, compared with a figure of 79.4 in March, while economists were expecting a more limited decline to around 79.

The sub-index measuring consumers' judgment of the current situation fell to 79.3, from 82.5 last month, as did the sub-index assessing their expectations, which dropped to 77 in April from 77.4 in March.

According to Joanne Hsu, the report's author, this deterioration is above all due to the rise in household inflation expectations, with a 12-month estimate of 3.1% this month, compared with 2.9% in March, a level once again above the 2.3% to 3% range that prevailed prior to Covid's epidemic.

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