US consumer confidence returns to pre-pandemic levels

U.S. consumer confidence rose sharply for a second straight month in April, hitting the highest level in more than a year as consumer sentiment was boosted by a more rapid rollout of the vaccines and another round of support payments

ByMARTIN CRUTSINGER AP Economics Writer
April 27, 2021, 2:30 PM
Alanna Kelly, of Norwood, Mass., examines clothes washers and dryers on display at Sam's Appliances TV & Furniture, Thursday, March 25, 2021, in Norwood. U.S. consumer confidence surged in March to the highest reading in a year, helped by increased v
Alanna Kelly, of Norwood, Mass., examines clothes washers and dryers on display at Sam's Appliances TV & Furniture, Thursday, March 25, 2021, in Norwood. U.S. consumer confidence surged in March to the highest reading in a year, helped by increased vaccinations and more government economic support. The Conference Board said Tuesday, March 30, its consumer confidence index rose to 109.7 in March, the best showing since it stood at 118.8 in March of last year as the pandemic was beginning to hit the United States. (AP Photo/Steven Senne)
The Associated Press

WASHINGTON -- Consumer confidence rose sharply for a second straight month, hitting the highest level since the pandemic began, as the rapid rollout of vaccines and another round of U.S. financial support for Americans boosts optimism.

The Conference Board reported Tuesday that its consumer confidence index advanced to a better-than-expected 121.7 in April, up from 109.0 in March. It was the strongest reading since the index stood at 132.6 in February 2020, right before the COVID-19 pandemic struck in the United States.

The present situation index, based on consumers assessment of current business and labor market conditions sored from 110.1 to 139.5. The expectations index, based consumers' views of what conditions will be like over the next six months, posted a more moderate gain, rising from 108.3 last month to 109.8 in April.

Economists believe that the rising consumer confidence will bolster overall economic growth as consumers, who account for 70% of economic activity, step up their spending as lockdown restrictions are eased.

Overall growth, as measured by the gross domestic product, could top 5% in the January-March quarter, and could accelerate even more to 10% or even more in the current April-June quarter as pent-up demand fuels spending. The U.S. releases new GDP data Thursday.

“Consumer confidence has rebounded sharply over the last two months,” said Lynn Franco, senior economic indicators director at the New York-based Conference Board. “Consumers were more upbeat about their income prospects, perhaps due to the improving job market and the recent round of stimulus checks.”

The government distributed individual payments of up to $1,400 starting in March as part of a $1.9 trillion relief package President Joe Biden pushed through Congress.

The report showed that the percentage of survey respondents saying jobs were “plentiful” rose to 37.9% in April, the highest level since March 2020.

“Consumer attitudes are likely to keep improving over coming months as the economy continues to reopen and job and income prospects brighten,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics.

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