Consumer Confidence Declines in April
The Conference Board’s index of consumer confidence unexpectedly decreased to 95.2 in April from 101.4 a month earlier, the New York-based private research group said April 28.
The median forecast in a Bloomberg News survey of 77 economists called for the gauge to climb to 102.2 after a previously reported 101.3 a month earlier. Estimates ranged from 99.5 to 105.
The index averaged 96.9 during the last expansion and 53.7 during the 18-month recession that ended in June 2009.
Another report April 28 showed home prices in 20 U.S. cities appreciated at a faster pace than forecast in the year ended in February.
The S&P/Case-Shiller index increased 5% after rising 4.5% in the 12 months through January. Nationally, prices climbed 4.2% year over year.
Higher real estate prices may persuade more homeowners to put their properties on the market, boosting the limited inventory that has been holding some prospective buyers back. More supply, in addition to continued gains in the labor market and looser lending standards, will be needed to help the housing market accelerate after showing inconsistent progress.
“It’s a matter of constrained supply that’s pushing the home prices up,” Millan Mulraine, deputy head of U.S. research and strategy TD Securities USA in New York, said before the report. “They’re in a bit of a sweet spot right now.”
Economists’ estimates in the Bloomberg survey ranged from gains of 4.4% to 5.3%. The S&P/Case-Shiller index is based on a three-month average, which means the February figure also was influenced by transactions in January and December.
Home prices in the 20-city index adjusted for seasonal variations increased 0.9% in February for a third consecutive month. The Bloomberg survey median called for a 0.7% gain.
