- Richard Curtin, survey director
U.S. consumer confidence rose more-than-expected in April compared to the previous month, hitting the highest level in nine months as views on current and short-term conditions surged, the University of Michigan Consumer Sentiment survey showed. The final reading came in at 84.1, beating expectations for the 83.0 figure and the preliminary April reading of 82.6. The headline gauge was the highest reading since July 2013. The poll's one-year inflation expectations stayed at 3.2%, unchanged form the March reading. The UoM Consumer Sentiment indicator that surveys around 500 consumers on current and near-term economic conditions tends to produce high market volatility as consumer sentiment is highly correlated to consumer spending, which accounts for the majority of the U.S. economic activity.
Meanwhile, this week's main highlight will be statistics from the U.S. labour market on Friday as well as first quarter's advance GDP and Janet Yellen's speech. Barclays Capital expects the number of payrolls will rise to 250,000 in April, stronger than the 192,000 increase a month earlier, as companies will be more willing to hire new employees after harsh winter. At the same time, the overall unemployment rate is likely to fall to 6.6%, while average cash earnings will climb 0.2%. Friday's reports will be another opportunity for the labour market to show its strength, supporting the case for faster tapering.
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