The University of Michigan Index of Consumer Sentiment registered 47.6 in its preliminary April report, below market expectations for 52.0. This marked a decline from 53.3 in March. The Index of Current Economic Conditions fell 5.7 points to 50.1, while the Index of Consumer Expectations fell 5.6 points to 46.1.
The ABA Office of the Chief Economist believes weakening household confidence may signal headwinds for the banking industry. To the extent that lower consumer sentiment translates to more cautious spending behavior, demand for consumer credit such as credit cards and auto loans will be reduced.
