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The numbers: The University of Michigan said the final reading of its consumer sentiment index in April was 97.2, down a touch from the 98.4 in reading in March.
Economists polled by MarketWatch expected a 97.0 reading.
What happened: After rising as the economy has recovered, sentiment is now stuck in a range. The sentiment index has averaged 97.2 during the Trump administration, identical to the April 2019 reading. In April, measures of current economic conditions and expectations fell slightly.
Still, it’s settled into a good level. When asked about their financial prospects for the year ahead, the percent who expect improvement over those who expect worsening finances has reached the best level since 2004.
Asked about longer-term financial prospects, 60% reported in the April survey that they expected to be better off financially over the next five years. While a record high, the question wasn’t asked consistently until 2011.
The big picture: With a U.S. economy growing at a 3.2% clip in the first quarter, and the unemployment rate near the lowest levels in 50 years, confidence is pretty strong. Wage growth of late also is helping contribute to a more optimistic tone.
What they’re saying: “We continue to expect firmer consumer spending momentum ahead, after a soft 1.2% annualized advance in the first quarter. Upbeat consumer expectations continue to point to such a pickup,” said economists from Oxford Economics in a note to clients.
Market reaction: U.S. stocks DJIA, +0.12% , near record highs, struggled for direction on Friday. The yield on the benchmark 10-year Treasury TMUBMUSD10Y, -1.21% fell to 2.5%.
Opinion: Behind that great GDP number, the real economy is slumping
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