The Conference Board’s Consumer Confidence Index Declines in April

The Conference Board, a non-partisan, not-for-profit think tank founded in 1916, released Tuesday (4-25-23) its Consumer Confidence Index® (CCI) for April. The CCI Index declined in April to a reading of 101.3 (1985=100), down from March’s reading of 104.0.

The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—increased in April to a reading of 151.1 (1985=100), up from March’s reading of 148.9.

The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—declined to a reading of 68.1 (1985=100) in April, down from March’s reading of 74.0. The Conference Board notes that The Expectation Index has been below 80—the level associated with a recession within the next year—every month since February 2022, with the exception of a brief uptick in December 2022.

Adding additional background and his analysis to the release of the CCI for April, Dr. Ataman Ozyildirim, Senior Director of Economics at the Conference Board, said:

“While consumers’ relatively favorable assessment of the current business environment improved somewhat in April, their expectations fell and remain below levels which often signals a recession looming in the short-term. Consumers became more pessimistic about the outlook for both business conditions and labor markets. Compared to last month, fewer households expect business conditions to improve and more expect worsen conditions in the next six months. They also expect fewer jobs to be available over the short term. April’s decline in consumer confidence reflects particular deterioration in expectations from consumers under 55 years of age and for household earning $50,000 and over.”