US consumer expectations improve in April, Conference Board says

The US consumer was blindsided by the Covid-19 pandemic as reflected in a closely-followed confidence gauge.

The Conference Board's consumer index slumped from a March reading of 118.8 to 86.9 for April (consensus: 90.0), amid a record drop in the 'present situation' sub-index from 166.7 to 76.4.

A sub-index tracking consumers' short-term expectations for the economy on the other hand improved, from 86.8 to 93.8.

Lynn Franco, a senior director at the Conference Board, linked that improvement to the possible easing of stay-at-home restrictions and the re-opening of the economy.

"However, consumers were less optimistic about their financial prospects and this could have repercussions for spending as the recovery takes hold," she added.

"The uncertainty of the economic effects of COVID-19 will likely cause expectations to fluctuate in the months ahead."