U.S. consumer confidence intact, despite slip

U.S. consumer confidence slipped in April but remains at high levels.

The Conference Board, a business research group, says its consumer confidence index registered 120.3 this month, down from 124.9 in March (which was the highest reading in 16 years).

Americans’ assessment of current conditions and their expectations for the future may have dipped this month–and their outlook for the jobs market also dimmed–but consumers’ spirits have risen sharply since the election of President Trump.

“Despite April’s decline, consumers remain confident that the economy will continue to expand in the months ahead,” said Lynn Franco, the Conference Board’s director of economic indicators.

Economists closely monitor the mood of consumers because their spending accounts for about 70% of U.S. economic activity.

What about Canada?

In Canada, consumer confidence and spending is also key, and it continues to be a cornerstone of domestic growth.

People’s spending has been boosted by recent employment gains and the fact that disposable income has accelerated since mid-2016, according to a Desjardins economic report. Also, Canadians’ confidence has increased in the last few months.

Still, the downside of depending on consumer spending and confidence is wage growth is weak. Not to mention, the impact of rising rates is likely to be significant.

For more, read: Household spending continues to drive growth

Staff, with files from The Associated Press

The Associated Press is an American not-for-profit news agency headquartered in New York City.