University of Michigan Reports Final Results of its Consumer Sentiment Index for April

The University of Michigan on Friday (4-28-23) released the final results of its Consumer Sentiment Index for April.

• The Index of Consumer Sentiment increased to a reading of 63.5 in April, up from the March reading of 62.0. This is a month-over-month increase of 2.4% but down 2.6% year-over-year (65.2 in April 2022).
• The Current Economic Conditions rose to a reading of 68.2 in April, up from the March reading of 66.3. This is a month-over-month increase of 2.9% but down 1.7% year-over-year (69.4 in April 2022).
• The Index of Consumer Expectations increased to a reading of 60.5 in April, up from the March reading of 59.2. This is a month-over-month gain of 2.2% but down 3.2% year-over-year (62.5 in April 2022).

In remarks and analysis prepared to accompany the release of the report, Dr. Joanne Hsu, Director of Surveys for the University of Michigan, said:

“Consumer sentiment was little changed this month, inching up less than two index points from March. Buying conditions for durables improved 11% primarily on the basis of easing perceptions of unaffordability. Despite the increasingly negative news on business conditions heard by consumers, their short- and long-run economic outlook improved modestly from last month. These improvements were balanced by worsening assessments of personal finances due to higher expenses, reflecting the ongoing pain stemming from continued high prices.”