US: CB Consumer Confidence Index drops to 86.9 in April from 118.8
|- Consumer Confidence in the US deteriorates sharply in April.
- US Dollar Index rebounds modestly as sentiment turns sour on disappointing data.
The Consumer Confidence Index slumped to 86.9 in April from 118.8 in March (revised from 120), The Conference Board's (CB) monthly data showed on Tuesday.
Further details of the publication revealed that the Present Situation Index plunged to 76.4 from 166.7, Expectations Index rose to 93.8 from 86.8 and Jobs Hard-to-Get Index increased to 33.6 from 13.8. Finally, the 1-Year Consumer Inflation Rate Expectations edged higher to 5.3% from 4.5%.
Commenting on the data, “The 90-point drop in the Present Situation Index, the largest on record, reflects the sharp contraction in economic activity and surge in unemployment claims brought about by the COVID-19 crisis," said Lynn Franco, Senior Director of Economic Indicators at The Conference Board.
Market reaction
The disappointing reading seems to be weighing on the market sentiment. As of writing, the US Dollar Index, which touched a daily low of 99.45, was down 0.35% on the day at 99.70. Moreover, Wall Street's main indexes pulled away from session highs and the Nasdaq Composite dropped into the negative territory.
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