US Consumer Sentiment At 3-Month High

The University of Michigan's consumer sentiment for the United States rose to 98 in April of 2017 from 96.9 in the previous month, according to preliminary estimates. Figures beat market forecasts of 96.5, boosted by an improvement in current financial and economic situation.

The barometer for current economic conditions jumped to 115.2 from 113.2 in March, the highest level since November of 2000.

The gauge of future expectations increased to 86.9 from 86.5.

Americans expect the inflation rate to be 2.5 percent next year and 2.4 percent in the next 5 years, both unchanged from the previous month.

"While partisanship had no impact on the Current Conditions Index (Democrats and Republicans differed by just 0.4 points), the data suggest the beginning of a convergence on the Expectations Index, with the figure for Democrats rising 7% and falling for Republicans by 7%, although the gap still remained an astonishing 50.5 Index points. Much more progress on shrinking the partisan gap is needed to bring economic expectations in line with reality. A slow pace of convergence will make it more difficult to disentangle political fervor from what appears to be a growing sense among consumers that the economy will experience fundamental changes in the years ahead. It can be anticipated that optimism will commingle with uncertainty, causing uneven spending patterns across months. Moreover, differential price trends for assets, products, and imports will cause uneven trends in incomes, wealth, and spending across products as well as economic subgroups."

US Consumer Sentiment At 3-Month High

University of Michigan | Joana Taborda |
4/13/2017 4:09:27 PM