Consumer Confidence Rose in April on Brighter Economic View

U.S. consumer confidence rebounded in April as Americans felt more optimistic about present and future economic conditions, underscoring how a tight labor market and higher wages are underpinning attitudes amid some uncertainty.

The Conference Board’s index climbed to 129.2, according to data from the New York-based group Tuesday that topped economist estimates in a Bloomberg survey. The gauge of views on the present situation increased to 168.3, while the expectations index climbed to 103.

Economists pay close attention to the index because consumer spending accounts for about 70 percent of U.S. economic activity.

Key Insights

• The greater confidence suggests consumers are poised to keep spending, spurred by a tight labor market, record stock values and lower mortgage rates. The government’s monthly jobs report Friday is also expected to show payroll gains remained steady while wages accelerated following first-quarter economic growth that exceeded projections.
• The report contrasts with the University of Michigan’s April sentiment gauge, which fell on weaker views of current economic conditions and expectations.
• Respondents saying jobs are plentiful increased to 46.8 percent, while those who saw jobs as hard to get fell to 13.3 percent. That brought the labor differential -- which measures the gap between those two measures -- to near the highest since 2001.
• Buying plans for cars, homes and major appliances all cooled.