US consumer outlook holds steady despite inflation, war: survey

Americans’ outlook for the world’s biggest economic system progressed barely in April, in spite of ongoing concerns about inflation and the conflict in Ukraine, a survey launched Tuesday said.

But with inflation at a 40-years  high and drivers seeing soaring charges at the fuel pump, feelings about the existing situation worsened really, according to The Conference Board’s customer confidence index.

Consumer confidence slipped to 107.3, simply barely under the March level of 107.6, even as the present scenario index dipped to 152.6 however the expectancies index, based on consumers’ short-term outlook for profits, commercial enterprise and jobs, edged up to 76.7.

“Expectations, while still weak, did not deteriorate further amid high prices, especially at the gas pump and the war in Ukraine,” said Lynn Franco, the institution’s senior director of economic indicators.

And though views on the current situation fell, the indicator “remains quite high, suggesting the economy continued to expand in” the early months of the second quarter, Franco said in a statement.

While vacation intentions cooled, consumers’ plans to buy big ticket items rose, and concerns about inflation retreated from an all-time level in March, the report said.

Franco cautioned that “inflation and the war in Ukraine will continue to pose downside risks to confidence and may further curb consumer spending this year.”

Mahir Rasheed of Oxford Economics said expectations that inflation has peaked may inject optimism into US consumers, but cautioned that the descent will be slow.

“Confidence has held up relatively well in the face of elevated geopolitical disruptions and the fiery pace of price increases in recent months,” he said in an analysis.

“A red-hot labor market and a more encouraging outlook suggest confidence should not deteriorate further unless risks metastasize in the months ahead.”