US: Consumer Confidence crumbled in April – BMO

The Conference Board’s Consumer Confidence Index was a horrible headline, but fully expected and understandable. Jennifer Lee from the Bank of Montreal focuses on the fact that the outlook rose, and Americans believe that things will get better.

Key quotes

“The Conference Board's Consumer Confidence Index plunged a record 31.9 pts to 86.9, the lowest since June 2014. This was on top of March's 13.8 pt drop.”

“It wasn't all terrible. Really. There is hope about the future, that this situation is temporary and the world will get through it. The expectations component rose 7.0 pts to 93.8, and that is key and a good gauge on how consumers will behave once the lockdowns are lifted, perhaps not immediately but eventually.”

“Over 40% of those in the survey expect to see employment increase in six months, and for business conditions to improve. Interestingly, buying plans for homes or major appliances look to be on hold as buying intentions slipped, clearly, but didn't fall off the cliff.”