As additional fiscal stimulus allowed for more services businesses to reopen, boosting demand and hiring by companies, the U.S. consumer confidence jumped to a 14-month high in this April.
The upbeat survey from the Conference Board, showed a strong increase in vacation plans. This has suggested the economy continued to power ahead early in the second quarter. This appears to be the robust growth in the first three months of the year. And since 2003, this is believed to be the second strongest growth by various economists. This year’s growth is believed to be the best among in four decades, so far.
Ben Ayers, senior economist at Nationwide in Columbus, Ohio stated that leading by strong spending as households return to eating out, traveling and visiting stores, the economy should surge ahead starting the second quarter and likely carrying into 2022. Consumer confidence index raced to a reading of 121.7 this month, in the Conference Board. Since February, this was the highest level.
Based on consumer’s assessment of current business and labor market conditions, the survey’s present situation measure soared to a reading of 139.6 from 110.1 last month. The expectations index on the other hand ticked up to 109.8 from 108.3 in March. This is based on consumers’ short-term outlook for income, business and labor market conditions.
The White House’s $1.9 trillion pandemic rescue package have allowed for greater economic re-engagement. In March retail sales surged to a record high. And also, the employers in this seven month, has hired the most workers. To boost production businesses are also investing in capital. U.S. stocks were mostly lower.
The improving economic climate is expected to be reinforced by the government’s snapshot of first-quarter GDP.