Investing.com - Confidence among U.S consumers unexpectedly rose in April, according to data released on Tuesday.
The Conference Board's index of consumer confidence increased to 128.7, compared to a reading of 126.0 forecast by economists. The measure had decreased to 127.0 in the previous month.
The index looks at U.S. consumer’s views of current economic conditions and their expectations for the next six months. The index is closely watched by economists because consumer spending accounts for about 70% of U.S. economic activity.
The Present Situation Index increased from 158.1 to 159.6, while the Expectations Index improved from 106.2 last month to 108.1 this month.
“Consumer confidence increased moderately in April after a decline in March,” Lynn Franco, director of Economic Indicators at The Conference Board, said.
Franco noted that consumers’ assessment of current conditions improved somewhat, with consumers rating both business and labor market conditions quite favorably.
She further indicated that consumers’ short-term expectations also improved, with the percent of consumers expecting their incomes to decline over the coming months reaching its lowest level since December 2000 (6%).
“Overall, confidence levels remain strong and suggest that the economy will continue expanding at a solid pace in the months ahead,” Franco concluded.