U.S. consumer sentiment continued to improve in late April as job gains surged and economic activity recovered across much of the country. But the strength of consumer spending could lead inflation higher than desired.
The University of Michigan’s final sentiment index for April rose to 88.3 from the midmonth reading of 86.5, data released Friday showed. This was up from 84.9 in March.
The improvement was better than expected. Analysts surveyed by Econoday had forecast a rise to 87.1. The index is now at the highest level in 14-months.
“The April survey recorded continued gains in consumer confidence due to a growing sense that the upward momentum in jobs and incomes will persist,” said Richard Curtin, the survey’s chief economist. “Overall, the data indicate an exceptional outlook for consumer spending through mid-2022.”
The numbers are so strong that they could indicate that inflation will not be mild and