US consumer confidence unexpectedly climbs on jobs outlook

[NEW YORK] US consumer confidence unexpectedly edged up in April to the highest this year as Americans grew more hopeful about the outlook for the labour market.  

The Conference Board’s gauge increased to 92.8, from 92.2 in March, data out on Tuesday (Apr 28) showed. The median estimate in a Bloomberg survey of economists called for a reading of 89.

A measure of expectations for the next six months climbed in April, while a gauge of present conditions ticked lower. 

The improvement in confidence, despite broader concerns tied to higher costs and war in the Middle East, may reflect a fragile ceasefire between the US and Iran and signs of stabilisation in the labour market. Hiring rebounded in March and more recent data point to limited layoffs. 

Still, the Conference Board’s gauge remains subdued compared with recent years, and many consumers continue to fret about their job prospects and rising prices. 

A separate measure of consumer sentiment, released last week, dropped to a record low in April. And roughly one in two employed Americans said they were concerned about losing their job in a Harris Poll conducted for Bloomberg News last month.

The share of consumers who said jobs are currently hard to get fell slightly, though the share saying jobs are plentiful was little changed at a depressed level. 

The difference between these two – a metric closely followed by economists to gauge the job market – improved. 

The share of respondents who expect more employment opportunities in the next six months climbed to a four-month high. Respondents were also generally less pessimistic about their income prospects.

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The survey period for the Conference Board’s measure was April 1-22. BLOOMBERG