By Ruth Mantell, MarketWatch
WASHINGTON (MarketWatch) — Consumer sentiment declined in early April on worries about current economic conditions, according to a gauge released Friday by the University of Michigan/Thomson Reuters.
The preliminary UMich reading for consumer sentiment in April declined to 75.7 from a final March level of 76.2.
Rising gasoline costs have been weighing on consumers’ minds. According to weekly data compiled by the Energy Department, gas prices at the pump have gained almost 70 cents a gallon since late last year — and now average about $3.94.
However, the economy has also been steadily adding jobs: The U.S. has gained more than 600,000 jobs this year, though employment gains slowed in March, according to Labor Department data.
Economists polled by MarketWatch had expected a mid-April UMich reading of 76.4, with gas prices and concerns about Europe offsetting cheer from employment gains and higher stock prices. See economic calendar.
The sentiment gauge, which covers how consumers view their personal finances as well as business and buying conditions, averaged about 87 in the year before the most recent recession. Economists watch sentiment data to get a feel for the direction of consumer spending.
According to the UMich report, an index of consumers’ view on current conditions fell to 80.6 in mid-April from 86 at the end of March. Meanwhile, the expectations gauge increased, climbing to 72.5 from 69.8.
Also Friday, the government reported that the consumer price index rose 0.3% in March, with gains for most goods and services. Read more about inflation.
Ruth Mantell is a MarketWatch reporter based in Washington.
