U.S. consumers are considerably less gloomy about the economy. The consumer confidence index jumped to a reading of 39.2 in April from 26.9 in March, the Conference Board reported.
The 12.3-point month-to-month gain was the fourth-largest ever in the 32-year history of the survey. The index bottomed at a record low 25.3 in February. March's revised reading of 26.9 was the second-lowest on record.
The 12.3-point month-to-month gain was the fourth-largest ever in the 32-year history of the survey. The index bottomed at a record low 25.3 in February. March's revised reading of 26.9 was the second-lowest on record.
Economists had been expecting the index to rise about five points, to 30.5, for April, according to a survey conducted by MarketWatch. "The survey results do not alter the dismal way in which consumers continue to view the economy, but they fit the 'green shoots' idea currently driving market prices," said Tony Crescenzi, chief bond market strategist for Miller Tabak & Co.
Consumers were a little happier about the present situation than they were in March, but the big improvement came in the expectations index, which surged to 49.5 in April from 30.2 in March -- the biggest increase since the fall of Baghdad in the spring of 2003.
"The sharp increase in the expectations index suggests that consumers believe the economy is nearing a bottom," said Lynn Franco, director of consumer research for the Conference Board. "However, this index still remains below levels associated with strong economic growth."
The present situation index improved to 23.7 in April from 21.9 in March, still a very weak reading. The percentage of consumers saying business conditions are "bad" fell to 45.7% from 51%, while the proportion saying conditions are "good" increased to 7.6% from 6.9%.
"The closely watched question on views of the current labor market showed only marginal improvement," wrote David Greenlaw and Ted Wieseman, economists for Morgan Stanley.
Indeed, survey respondents saying jobs are hard to get fell modestly, to 47.9% from 48.8%, while the percentage saying jobs are easy to get also fell, dropping to 4.5% from 4.7%, and pointing to further job losses.
The short-term outlook brightened, but consumers remained pessimistic overall. Those expecting conditions to improve in the next six months rose to 15.6% from 9.6%, while the percentage saying conditions will worsen further declined to 25.3% from 37.8%.
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