US University of Michigan consumer sentiment dropped to 71.0 in April, down from 89.1. Current economic conditions index dropped to 72.4, down from 103.7. Consumer expectations dropped to 70.0, down from 79.7.
The -18.1 pts plunge was the latest decline ever recorded. Combined with march’s decline, the two-month drop of -30.0 pts was 50% larger than the prior record. “The free-fall in confidence would have been worse were it not for the expectation that the infection and death rates from covid-19 would soon peak and allow the economy to restart” Surveys of Consumers chief economist, Richard Curtin said.
“Consumers need to be prepared for a longer and deeper recession rather than the now discredited message that pent-up demand will spark a quick, robust, and sustained economic recovery.”
