U.S. Consumers More Concerned Over Labor Market, Business Conditions

By Ed Frankl

U.S. consumer confidence retreated to its lowest level since July 2022, reflecting increased unease about the jobs market and conditions for businesses amid expectations that Federal Reserve interest rates will be higher for longer.

An index published by research group The Conference Board on Tuesday said confidence fell for the third-straight month to 97.0 in April from 103.1 in March. Economists had expected the index to dip to 103.5, according to a poll compiled by The Wall Street Journal.

Consumers became less positive about the current labor-market situation, and more concerned about future business conditions, job availability, and income, said Dana M. Peterson, chief economist at the Conference Board.

Elevated price levels, especially for food and gas, also dominated consumer's concerns, she said.

Consumers' expectations for the next six months slipped, driven by a weaker outlook for business, employment and incomes. Assessments of present situation ticked down but remain in relatively optimistic territory, The Conference Board said.

More respondents expected higher interest rates in the year ahead, while expectations that stock prices will increase in the year ahead declined slightly.

Concerns among consumers come after the U.S. posted slower expansion in the first quarter of the year. However, the 1.6% annualized growth in GDP in the period is faster than many peer economies.

Write to Ed Frankl at [e-mail]

(END) Dow Jones Newswires

04-30-24 1040ET