Consumer confidence fell in April for the third straight month and touched a 21-month low due to the high cost of food and gas and and fresh worries about the jobs market.
The consumer-confidence index sank to 97.0 this month from a revised 103.1 in March, the Conference Board said Tuesday. That’s the lowest level since July 2022.
Consumer confidence tends to signal whether the economy is getting better or worse. Confidence has retreated since the start of the year and sits well below the pre-pandemic high.
“Elevated price levels, especially for food and gas, dominated consumer’s concerns, with politics and global conflicts as distant runners-up,” said Dana Peterson, chief economist at the board.
Economists polled by the Wall Street Journal had forecast the index to register 103.5 in March.
A confidence gauge that looks ahead six months fell even more sharply to 66.4 in April from 74.0 in the prior month. It’s the third straight reading below 80.
Historically readings below 80 in the expectations index signal a forthcoming recession. Yet the index has dipped below that mark repeatedly since 2022 even though the economy has kept expanding at an above-average speed.
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