Consumer Sentiment Strong, But Below Estimates

Consumer sentiment came in below the low estimate, at 97.8 for the preliminary April index. Expectations fell 1.2 points to 86.8 but the easing so far this month is centered in current conditions which are now at 115.0 and well off the extremely strong 121.2 of March. The decline in current conditions hints at trouble for April consumer spending and may be, like weekly jobless claims, an early negative signal on the month's labor market.

Inflation expectations had been inching higher but are now stepping back, at 2.7 percent for the year-ahead outlook and 2.4 percent for the 5-year which are both down 1 tenth in the month.

Though very strong in March, this report had been lagging other confidence readings which limits the impact of today's results.