Michigan Consumer Confidence Drops To 77.2 In April, Missing Analyst Expectations

On April 26, 2024, the University of Michigan released the final reading of Michigan Consumer Sentiment report. The report indicated that Michigan Consumer Sentiment declined from 79.4 in March to 77.2 in April, compared to analyst consensus of 77.8.

Current Economic Conditions decreased from 82.5 in March to 79.0 in April, while Index of Consumer Expectations declined from 77.4 to 76.0.

From a big picture point of view, Michigan Consumer Sentiment is mostly flat for the third month in a row.

Year-ahead inflation expectations increased from 2.9% in March to 3.2% in April, while long-run inflation expectations grew from 2.8% to 3.0%. Rising inflation expectations may force the Fed to be more hawkish.

The University of Michigan commented: “Overall, consumers continue to express uncertainty about the future trajectory of the economy pending the outcomes of the upcoming election, but at this time there is no evidence that global geopolitical factors are on the forefront of consumers’ minds.”

U.S. Dollar Index tested session highs as traders reacted to the Consumer Confidence report. Currently, U.S. Dollar Index is trying to settle above the 105.90 level. Treasury yields are moving lower, but this move does not put any pressure on the American currency.

Gold settled near the $2340 level after an unsuccessful attempt to climb above $2350. Stronger dollar put some pressure on gold markets.

SP500 tested new highs above the 5100 level after the release of Consumer Condifence data. Rising demand for tech stocks serves as the key bullish catalyst for SP500 in today’s trading session.

For a look at all of today’s economic events, check out our economic calendar.