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The University of Michigan's consumer sentiment preliminary estimate came in at 86.5 the highest reading since March 2020 but lower than expected 89.0. One year inflation expectations are at the highest since 2012 3.7% vs 3.3% expected (3.1% prior)

UM Consumer Sentiment April 2021 P

The UofM sentiment reading of 86.5 in April 2021 is the highest reading since March 2020, mainly due to improving current economic conditions, while future economic prospects remained unchanged. For bond traders of note is the year-ahead inflation expectations rose to 3.7 percent, the highest level since March 2020. At the same time half of all consumers expected declines in unemployment, the highest level ever recorded.

"Consumers in early April reported surging economic growth and strong job gains due to record stimulus spending, low interest rates, and the positive impact of vaccinations", Surveys of Consumers chief economist, Richard Curtin, said. "The strength in current economic conditions reflects much larger than usual stimulus payments during the past year, and much larger than usual economic gains due to comparisons with last year's shutdowns.", he added.

United States Consumer Sentiment

University of Michigan's Consumer Sentiment Highlights For April (Prelim)

  • US April prelim U Mich consumer sentiment 86.5 vs 89.0 expected from 84.9 in the previous month
  • The first look at April consumer sentiment 
  • Final March reading was 84.9
  • Current conditions 97.2 vs 96.0 expected (93.0 prior)
  • Expectations 79.7 vs 85.0 expected (79.7 prior)
  • 1-year inflation expectations 3.7% vs 3.3% expected (3.1% prior)
  • One year inflation expectations are at the highest since 2012.
  • 5-10 year inflation expectations 2.7% vs 2.8% prior

The strength in current economic conditions reflects much larger than usual stimulus payments during the past year, and much larger than usual economic gains due to comparisons with last year's shutdowns. the report said

Source: University of Michigan 

From The TradersCommunity News Desk

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