Consumer sentiment rises less than expected in April

• April University of Michigan Consumer Sentiment  (preliminary): 86.5 vs. 89.0 expected and 84.9 prior.
• While the headline number is lower than consensus, it's still the best level in a year, buoyed by record stimulus spending, low interest rates, and the positive impact of vaccinations.
• Current Economic Conditions: 97.2 vs. 93.0 prior.
• Index of Consumer Expectations: 79.7 vs. 79.5 prior.
• The numbers differ from the usual pattern over the past fifty years, when recoveries are paced by larger and earlier gains in expectations, said Richard Curtain, Surveys of Consumers chief economist.
• Factors suppressing the pace of expected gains include "persistent concerns with vaccine safety as well as a surge in year-ahead inflation expectations to 3.7%, the highest level in nearly a decade," Curtain said.
• However, consumers expect much lower inflation over the next five years, at 2.7%, according to the survey.