Americans’ confidence in the economy took a hit in April, according to Andrea Riquier of MarketWatch, citing The University of Michigan’s sentiment index, which fell to 89.0 from 91.0. Economists surveyed by MarketWatch had expected a 90.0 reading.
Driven largely by the expectations component, the index is now 7.2% lower than its level a year ago. It fell 4.8% during the month to 77.6, and is 12.6% lower than in April 2015.
Survey director Richard Curtin said the presidential campaign could be responsible for the negative outlook. “The size of the decline, while troublesome, is still far short of indicating an impending recession,” he wrote.
Consumers’ views of the current situation, meanwhile, were more positive. They rose 1.0% in April to 106.7, and were down just 0.3% for the year.