Consumer Sentiment Down 1.4% in April

Ann Arbor, MI, April 18, 2016—Consumer sentiment fell 1.4% to 89.7 in April from March’s 91.0 rate, according to preliminary results from the University of Michigan Survey of Consumers.

This represents a 6.5% change year over year.

“Consumer confidence continued its slow overall decline in early April, marking the fourth consecutive monthly decline,” said Survey of Consumers chief economist, Richard Curtin. “To be sure, the sizes of the recent losses have been quite small, with the Sentiment Index falling just 2.9 Index-points since December 2015, although it was down 6.2 Index-points from a year ago and 8.4 points below the peak in January 2015. None of these declines indicate an impending recession, although concerns have risen about the resilience of consumers in the months ahead. Consumers reported a slowdown in expected wage gains, weakening inflation-adjusted income expectations, and growing concerns that slowing economic growth would reduce the pace of job creation. These apprehensions should ease as the economy rebounds from its dismal start in the first quarter of 2016. Overall, the data now indicate that inflation-adjusted personal consumption expenditures will grow by 2.5% in 2016.”