U.S. Consumer Confidence Index Falls To 120.3 In April
Editor's Note: Updating earlier story to add more details from report, economist comment and updated gold prices
(Kitco News) - Comex gold did not move much after The Conference Board reported Tuesday that the U.S. consumer confidence index fell to 120.3 in April from a revised 124.9 in March.
Consensus expectations from most news organizations called for a reading of around122.0 to 123.1.
Comex June gold was trading at $1,270 an ounce, down $7.50 for the day, as of 10:22 a.m. EDT. The metal had been at $1,269.10 four minutes ahead of the report.
“U.S. consumers keep telling pollsters they're confident, but that has yet to be borne out in activity data,” said Royce Mendes of CIBC Economics. “While the Conference Board's index of consumer confidence retreated slightly in April, it remains higher than it was at any point during the last expansion. So, while household spending data is likely to be a soft spot in the upcoming Q1 GDP data, these figures add to our confidence that we will see a rebound in Q2.”
The index for the present situation Index decreased from 143.9 to 140.6, while the expectations index declined from 112.3 last month to 106.7.
“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. Looking ahead, consumers were somewhat less optimistic about the short-term outlook for business conditions, employment and income prospects. Despite April’s decline, consumers remain confident that the economy will continue to expand in the months ahead.”