US consumer confidence falls to 9-month low in April
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The closely watched consumer confidence index from the business group dropped for the third time in four months and hit its lowest point since July 2022.
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A customer pushes a shopping cart at a Walmart store in Chicago, Illinois, U.S. November 23, 2016. (Reuters)
US consumer confidence decreased more than many had anticipated in April, according to survey results released on Tuesday, driven by a decline in expectations among households with annual incomes over $50,000 and those over 55.
The negative findings may decrease some of the pressure on the Federal Reserve as it gets ready to think about raising interest rates for the tenth consecutive week next week in an effort to rein in inflation.
The Conference Board reported that the consumer confidence index decreased in April to 101.3 from a revised 104.0 in March. This fell short of economists' median predictions in a MarketWatch poll.
The expectations of consumers "fell and remain below the level which often signals a recession looming in the short term," according to a statement from Ataman Ozyildirim, senior director of economics at The Conference Board.
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He said that "compared to last month, fewer households expect business conditions to improve and more expect worsening of conditions in the next six months," adding that they expect fewer jobs to be available over the short term.
A few members of the Fed's rate-setting committee have suggested in recent weeks that the US central bank should lift its benchmark lending rate next week.
Earlier, professional investors anticipated a further decline in the value of the dollar from its two-decade highs reached last year, a Bloomberg report explained, as the market has underpriced the Federal Reserve's impending easing cycle.
According to the most recent MLIV Pulse survey, 87% of 331 participants in a survey anticipated the Fed to drop interest rates to 3% or below as part of a loosening that 40% believe could begin this year. In contrast, market pricing places the estimated policy rate in two years at about 3.05%.
