Index of Consumer Sentiment up 1.9% Month-Over-Month in April and is 20.5% Higher Year-Over-Year

The University of Michigan released today (4-16-21) its preliminary Index of Consumer Sentiment (ICS) for April. Month-over-month the ICS rose 1.9% from 84.9% in March to 86.5% in April. When compared to April 2020, the ICS increased 20.5% or 71.8% to 86.5%. Current Economic Conditions and the Index of Consumer Expectations were also higher on a year-over-year basis. In remarks prepared for the ICS, Richard Curtin, Survey of Consumers Chief Economist said, “Consumers in early April reported surging economic growth and strong job gains due to record stimulus spending, low interest rates, and the positive impact of vaccinations. The Sentiment Index rose to its best level in a year on the strength of recent gains in current economic conditions, while future economic prospects remained unchanged from March. This is opposite of the usual pattern over the past fifty years, when recoveries were paced by larger and earlier gains in expectations. The strength in current economic conditions reflects much larger than usual stimulus payments during the past year, and much larger than usual economic gains due to comparisons with last year’s shutdowns.”