The Reopening: Consumer Confidence Climbed in April to 14-Month High

Consumer confidence soared in April to a 14-month high as rising vaccinations, declining coronavirus cases, and lifting of pandemic-fighting restrictions led to surging economic activity and a marked easing of anxiety.

The Conference Board said on Tuesday its consumer confidence index jumped a reading of 121.7 this month, the highest level since January 2020.

March’s preliminary result of 109.7 was revised down to 109, a score still far higher than anticipated. Analysts forecast the April index to come in at 112.

“Consumer confidence has rebounded sharply over the last two months,” said Lynn Franco, senior director of economic indicators at the Conference Board. “Consumers were more upbeat about their income prospects, perhaps due to the improving job market and the recent round of stimulus checks.”

The economy has regained its mojo as vaccinations have crushed the spread of the virus, states have eased restrictions, and Americans are starting to gain enough confidence to return to normal lives. The strength of the rebound has taken many forecasters by surprise and created a stumbling block for the Biden administration’s big-spending plans, many of which were initially pitched as a way of stabilizing the economy in the wake of the virus.

Most of the $1.9 trillion of stimulus spending authorized in March has yet to hit the economy. The $1,400 direct relief checks, however, have most likely boosted consumer spending somewhat, although economists expect much of that money was saved rather than spent.

The gauge of current conditions rose to 139.6, the best level in more than a year, while consumers’ economic expectations—which asks about economic prospects six months into the future—advanced to 109.8.

Consumers are much happier about the state of the jobs market. The share of consumers saying jobs are “plentiful” rose from 26.5 percent to 37.9 percent, while those claiming jobs are “hard to get” declined from 18.5 percent to 13.2 percent. But optimism about further improvement declined a bit, with the proportion expecting more jobs in the months ahead falling from 35.9 percent to 34.5 percent, and those anticipating fewer jobs rising from 14.4 percent to 15.5 percent.