US consumer confidence unexpectedly edged up in April to the highest this year as Americans grew more hopeful about the outlook for the labor market.
The Conference Board's gauge increased to 92.8, from 92.2 in March, data out Tuesday showed. The median estimate in a Bloomberg survey of economists called for a reading of 89.
A measure of expectations for the next six months climbed in April, while a gauge of present conditions ticked lower.
Photo Credit: Bloomberg
The improvement in confidence, despite broader concerns tied to higher costs and war in the Middle East, may reflect a fragile ceasefire between the US and Iran and signs of stabilization in the labor market. Hiring rebounded in March and more recent data point to limited layoffs.
Still, the Conference Board's gauge remains subdued compared with recent years, and many consumers continue to fret about their job prospects and rising prices.
A separate measure of consumer sentiment, released last week, dropped to a record low in April. And roughly one in two employed Americans said they were concerned about losing their job in a Harris Poll conducted for Bloomberg News last month.
What Bloomberg Economics Says...
“Confidence improved modestly in April, supported by a temporary truce in Iran and improved labor-market perceptions, but underlying sentiment remains fragile.”
— Eliza Winger
The share of consumers who said jobs are currently hard to get fell slightly, though the share saying jobs are plentiful was little changed at a depressed level.
The difference between these two — a metric closely followed by economists to gauge the job market — improved.
ALSO READ: Hormuz Digital Chokepoint: Iran War Raises Risks To Vital Subsea Cables
The share of respondents who expect more employment opportunities in the next six months climbed to a four-month high. Respondents were also generally less pessimistic about their income prospects.
Business Outlook
Americans were more mixed on the outlook for businesses, however. While more respondents see business conditions improving in the coming months, a higher share also sees conditions worsening.
“Consumer spending trends in 2026 remain focused on ‘cheap thrills' and necessary services, and away from expensive and highly discretionary activities,” the report said. Less than 41% of consumers expect to take a vacation in the next six months, the smallest share in a year.
Americans also expect borrowing costs to remain elevated. The Federal Reserve is broadly expected to hold interest rates steady this week amid renewed inflationary pressures. Tuesday's report showed nearly 63% of consumers expect interest rates to be higher a year from now, the most since August 2023.
The survey period for the Conference Board's measure was April 1-22, which included the ceasefire and the ensuing bounceback in the stock market.
The Conference Board's index generally focuses on labor market conditions, whereas a separate metric of consumer sentiment from the University of Michigan emphasizes views about personal finances and the cost of living. Still, they've largely tracked each other in recent years.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.