Surveys

Inflation Not Taking Huge Toll on Consumer Confidence, Yet

SurveysApr 28, 2022

Inflation Not Taking Huge Toll on Consumer Confidence, Yet

The Consumer Confidence Index dipped in April, but U.S. consumers remain “cautiously optimistic” overall, The Conference Board said.

Consumer confidence slipped in April but shoppers still seem intent on making big-ticket purchases, like cars and appliances, in the coming months, The Conference Board said this week.
New York—Consumer confidence remains relatively high despite inflation and the ongoing war in Ukraine, The Conference Board said. 
 
The Conference Board released its monthly Consumer Confidence Index on Tuesday, which is designed to be a barometer of health of U.S. economy from the consumers’ viewpoint.
 
The Consumer Confidence Index fell in April, but only slightly. It now stands at 107.3, down from 107.6 in March. (The baseline for the index is 100, so anything above 100 is indicative of a more optimistic consumer and an expanding economy.) 
 
The Present Situation Index, which measures consumers’ current assessment of business and labor market conditions, also fell—declining to 152.6 from 153.8 last month—but remains high. 
 
This is an indication the U.S. economy continued to grow in Q2, Lynn Franco, senior director of economic indicators at The Conference Board, said in a press release on the results.
 
The Expectations Index, which measures consumers’ short-term outlook on income, business and labor market conditions, remains “weak,” Franco said, but rose to 77.2 in April despite high prices—especially for gas—and the ongoing war in Ukraine. 
 
Consumers’ intentions around spending money on vacations “cooled,” while plans to purchase big-ticket items, like automobiles and appliances, increased. However, interest in purchasing big-ticket items is not as strong as it was in January because of rising interest rates, Franco told National Jeweler in an interview. 
 
There also is expected to be some softening in consumer spending because of inflation, particularly among less affluent consumers, who will see more of their budgets going toward necessities like gas and groceries. 
 
“It’s sort of the tale of two consumers,” Franco said, “The less affluent are more likely to be impacted as opposed to the more affluent.”
 
Also expected to factor in is what Franco described as “the wildcard”—the geopolitical situation, which includes the war in Ukraine as well as resurgence of COVID-19 in China and any resulting supply chain disruptions. 
 
 Related stories will be right here … 
 
Looking more closely at the Present Situation Index shows that consumers had a mixed view of April business conditions.
 
More consumers said business conditions were “good” (21 percent, up from 20 percent), but more also said conditions were “bad” (22 percent, up from 21 percent)—again, a “tale of two consumers.” 
 
Their view of the labor market deteriorated, with fewer consumers describing jobs as “plentiful” (55 percent vs. 57 percent) and 11 percent of consumers saying jobs were hard to get, up from 10 percent in March.
The Expectations Index, which gauges consumers’ outlooks for the next six months, showed a similarly mixed view of business conditions and a more pessimistic view of the labor market but a more upbeat feeling about their financial prospects.
 
In April, 17 percent of consumers surveyed said they expect their incomes to increase in the next six months, up from 15 percent in March. 
 
Fourteen percent said they expect their incomes to decrease, unchanged from March.
 
The Conference Board publishes The Consumer Confidence Index on the last Tuesday of every month. 

Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

ColumnistsJan 31, 2023
Squirrel Spotting: How About a Word for the New Year?

It begins with a “t” and ends with a “c” and is imbued with warmth and positivity, Peter Smith writes.

Policies & IssuesJan 31, 2023
Rio Tinto Issues Apology After Radioactive Capsule Goes Missing

The tiny capsule, which is believed to have fallen out of a truck, was lost somewhere along an 870-mile stretch of desert road.

MajorsJan 31, 2023
Indian Jewelry Brand Tanishq Opens First U.S. Store, More on the Way

The jeweler’s expansion plans include 20 to 30 more stores in North America and the Middle East over the next two to three years.

Brought to you by
Bringing Over 130 Years of Diamond Expertise to Modern Grading

De Beers Institute of Diamonds provides the very best in diamond verification, education and diamond services.

Events & AwardsJan 31, 2023
Gucci Is Getting a Gem Award

The Italian luxury brand will receive the first Gem Award for High Jewelry Excellence.

Weekly QuizJan 26, 2023
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
MajorsJan 31, 2023
Martin Flyer Names New VP of Business Development

Industry veteran Kevin Lane has stepped into the role.

MajorsJan 30, 2023
Researchers Uncover Bejeweled ‘Golden Boy’ Mummy

The ancient Egyptian teenager was buried 2,300 years ago with 49 amulets to guide him through the afterlife.

Brought to you by
De Beers Institute of Diamonds Expands to Offer Education

De Beers is sharing over 130 years of experience and expertise through the De Beers Institute of Diamonds with a selection of courses.

Events & AwardsJan 30, 2023
JA Is Searching for the Next Retail ’20 Under 40’

Nominations are open now through March 24.

MajorsJan 30, 2023
10 Jewelry News Stories You Might Have Missed

A column detailing how independent jewelers did last year and the top watch brands of 2022 were among the most-read stories last week.

FinancialsJan 27, 2023
Tiffany & Co. Shines for LVMH in 2022

Acquired in 2021, the brand’s high jewelry sales have doubled and its new “Lock” collection was an instant hit.

MajorsJan 27, 2023
Diamond Council of America Appoints Treasurer, Board Member

Executives from Fred Meyer Jewelers and Riddles Jewelers have filled the roles.

CollectionsJan 27, 2023
Piece of the Week: Heavenly Vices’ Lock Necklace

The Victorian-inspired design is a functional lock and key.

Supplier BulletinJan 26, 2023
JA New York Spring Brings the Industry Together

For over 100 years, JA New York has played an integral role in facilitating the evolution of our industry, while also honoring past traditions.

TrendsJan 26, 2023
At Vicenzaoro, Paola De Luca Gazes Into Jewelry’s Future

The trend forecaster and her guests explored unconventional jewelry designs, NFTs, AI art, and more during her Trendvision presentation.

CollectionsJan 26, 2023
NDC and Lorraine Schwartz Announce New ‘EDDI’ Class

The Emerging Designers Diamond Initiative provides diamond credit and mentorship to young brands helmed by BIPOC designers.

IndependentsJan 26, 2023
Lee Michaels Fine Jewelry Set to Open 10th Store

It will be located in San Antonio’s Alamo Quarry Market and will be Lee Michaels’ third location in the city.

Policies & IssuesJan 26, 2023
Diamonds Do Good Names 10 to Board of Directors

Stephanie Gottlieb, Jewelers Mutual’s Mike Alexander, and Craig Rottenberg of Long’s Jewelers are among the new board members.

WatchesJan 25, 2023
These Were 2022’s Top-Selling Watch Brands, Chrono24 Says

Rolex remained No. 1 while a brand known for its pilot watches slipped into the No. 5 spot.

MajorsJan 25, 2023
John Hardy Names New CEO

Luxury retail executive Frédéric Levy has taken on the role.

Events & AwardsJan 25, 2023
Couture DAC Accepting Applications for Mentorship Program

Jewelry designers have until early February to apply to take part in Couture's Diversity Action Council program.

CollectionsJan 25, 2023
Stephanie Gottlieb Announces First President, CCO Hire

Morgan P. Richardson joins from La Perla.

Policies & IssuesJan 25, 2023
PGI’s New Portal Wants to Teach You About Platinum

The new portal will share information on responsible platinum sourcing and how it’s used beyond jewelry.

SourcingJan 24, 2023
Tiffany Buys 35 of the Last Diamonds Recovered From Argyle

Purchased directly from Rio Tinto, the collection consists of pinks, purples and one red, none larger than 1.52 carats.

ColumnistsJan 24, 2023
On Data: Here’s How Independent Jewelers Did in 2022

Sherry Smith breaks down retailers’ performance last year, including how natural diamonds fared vs. lab-grown.

GradingJan 24, 2023
GIA Launches AGS Diamond Light Performance Supplement Report

The AGS Ideal Report by GIA is a digital-only addition to GIA diamond reports.

MajorsJan 24, 2023
WJA Announces New International Board Members

The seven newcomers include executives from David Yurman, De Beers, and GIA.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy