Published: April 25, 2023 at 10:06 am ET
The numbers: A consumer confidence survey fell to a nine-month low of 101.3 in April, reflecting nagging worries about a possible recession and a slowing labor market.
The closely-tracked index fell 2.7 points from a revised 104 in the previous month, the Conference Board said on Tuesday.
Confidence levels were lowest in April…
The payment: A consumer confidence survey fell to a nine-month low of 101.3 in April, reflecting nagging worries about a possible recession and a slowing labor market.
The closely-tracked index fell 2.7 points from a revised 104 in the previous month, the Conference Board said on Tuesday.
Confidence levels in April were the lowest since July 2022. Economists polled by the Wall Street Journal had forecast the index to hit 104.
Consumer confidence tends to signal whether the economy is getting better or worse. The index remains well below levels associated with a healthy economy.
Big picture: The US economy grew faster than expected in the first quarter of 2023, a period from January to March. Forecasters polled by the Wall Street Journal expect gross domestic product to grow 2% annually.
However, the economy is not likely to repeat this development in the spring. Rising interest rates and still-high inflation have slowed growth, and a scorching labor market appears to be cooling off somewhat.
Many economists believe a recession is not far off, a view that seems to be shared by many Americans given the low level of confidence.
Market reaction: The Dow Jones Industrial Average
DJIA
and S&P500
SPX
fell slightly in Tuesday trading.
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