Consumer Confidence Surges in April
he Conference Board said Tuesday its consumer confidence index increased to 81 in April from a revised 61.4 in March, the largest jump since March 1991, the month marking the end of the previous war with Iraq.
The index is a prognosticator of consumer spending. When people are feeling confident about the economy, they are more likely to spend money, which increases the demand for trucking services.
The Conference Board said the end of fighting in Iraq, lower energy costs and rising stock prices all attributed to the large gain in the index.
Economists had expected the index would rise to 70 this month, after a previously reported March reading of 62.5, Bloomberg reported. The March reading was the lowest since October 1993.
The component of the confidence index that tracks consumers' expectations for the next six months rose to 84.8 from 61.4, also the biggest gain since March 1991. A gauge of optimism about the present situation rose to 75.3 this month from 61.4 in March, the biggest gain in more than a year.
The board also said the percentage of consumers anticipating more jobs to become available increased to 16.7% in April from 10.8% in March, while those expecting fewer jobs fell to 20.9% from 26.5%.
The New York-based Conference Board said this monthly index is based on a representative sample of 5,000 U.S. households.
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