Consumer sentiment in the United States unexpectedly jumped to 65.7 in April of 2022 from an eleven-year low of 59.4 in March, preliminary estimates in the University of Michigan’s ongoing consumer sentiment survey determined.
The April sentiment figure beat market forecasts of 59, with the expectations index surging by 18% to 64.1.
Perhaps the most surprising change in the April survey results was that consumers anticipated a year-ahead increase in gas prices of just 0.4 cents, completely reversing March’s surge to 49.6 cents.
The current conditions gauge also increased to 68.1 from 67.2. Meanwhile, inflation expectations were unchanged for both the year-ahead, at 5.4% and the five-year outlook, 3%. Nonetheless, the April survey suggested only a small gain in sentiment, which is still close to recession lows. Significant sources of economic uncertainty could easily reverse the April gains in consumer sentiment, the university noted, including the impact on the domestic economy from Putin’s war, and the potential impact of new covid variants.
