US consumer confidence edges higher at the end of April, survey shows

The University of Michigan's consumer sentiment index edged up at the end of April to a reading of 71.8 after a preliminary print published roughly two weeks before of 71.0.

Nevertheless, that was far less than the 89.1 recorded at the end of March.

"In the weeks ahead, as several states reopen their economies, more information will reach consumers about how reopening could cause a resurgence in coronavirus infections," said Richard Curtin, the survey's director.

"Consumers' reactions to relaxing restrictions will be critical, either putting further pressure on states to reopen their economies, or exerting added pressure to extend the restrictions even if it has negative consequences for economic prospects."

A sub-index tracking Americans' expectations retrated from 79.7 at the of March to 70.1, while that linked to their evaluation of the current situation collapsed from 103.7 to 74.3.

While both sub-indices revealed that an economic recession was already under way, they also belied belief in the cyclical nature of the Covid-19 coronavirus, Curtin said.

To take note of, throughout April confidence among households with above median incomes registered a larger drop than among those with below median incomes, so that by the end of the month they had approximately converged.

Curtin also noted that sentiment appeared to prove mid-month but later fell back but that the temporary improvement could not be linked to any news regarding the coronavirus.

Finally, and on a cautionary note, Curtin said: "The necessity to reimpose restrictions could cause a deeper and more lasting pessimism across all consumers, even those in states that did not relax their restrictions."