The Consumer Confidence Index eased back to 120.3 in April from a revised 124.9 in March, making the two months the strongest in 8 years.
“Consumer confidence declined in April after increasing sharply over the past two months, but still remains at strong levels,” said Lynn Franco, Director of Economic Indicators at The Conference Board. “Consumers assessed current business conditions and, to a lesser extent, the labor market less favorably than in March.”
Consumers were less optimistic about the short-term outlook in April. The percentage of consumers expecting business conditions to improve over the next six months decreased from 26.9 percent to 24.8 percent, while those expecting business conditions to worsen rose from 8.5 percent to 10.9 percent.
“Looking ahead, consumers were somewhat less optimistic about the short-term outlook for business conditions, employment and income prospects,” Ms. Franco added. “Despite April’s decline, consumers remain confident that the economy will continue to expand in the months ahead.”
While consumer confidence has risen to record highs since the election of President Donald J. Trump, further gains are likely limited until wages show more improvement. The other two bedrocks of confidence, unemployment and housing, are on stronger footing.