The preliminary Reuters/University of Michigan consumer sentiment index for April came in at 82.6 on Friday, according to the university, an increase from 80.0 at the end of March, and 79.9 in mid-March. The latest reading is the highest since last summer.
Both components were up. Consumer expectations came in at 73.3, compared with a final March reading of 70.0. Current conditions rose to 97.1, compared with the final March reading of 95.7. Expectations probably gained because of higher confidence in the employment market, which seems to have made strides since a case of the winter blahs, as well as optimism about rising income.
Consumer sentiment, as measured by the University of Michigan for over 35 years, is still relatively low—and has been since the onset of the recession, though roughly comparable to the low readings of the late 1970s and early ’80s recessions, as well as the recession of the early 1990s. During most of the 2000s, consumer sentiment hovered around 90.0, so the current rate is approaching pre-recessionary levels, but it isn’t there yet.
