US consumer confidence rises 14 months, house prices rise Business and Economy News

Consumer confidence in the United States peaked at 14 months in April as increases in COVID-19 vaccines and additional fiscal incentives allowed more businesses to reopen, boosting business demand and hiring.

According to a promising survey released by the Conference Board on Tuesday, the economy will continue to grow as the pace of COVID-19 vaccines accelerates in the early second quarter. According to the survey, the economy continued to grow after strong growth in the first three months of the year, which many economists believe has been the second strongest since 2003. This year’s growth is expected to be almost fourfold in decades.

The survey also shows a large increase in American vacation planning.

“Consumers see the light at the end of the COVID tunnel,” said Ben Ayers, chief economist at Nationwide in Columbus, Ohio. “Due to strong spending, when it comes to eating, traveling and visiting homes, the economy should move forward from the second quarter to 2022.”

The Consumer Confidence Index on the Conference Board reached 121.7 readings this month. That was the highest level since February 2020, before the COVID-19 pandemic began, with 109.0 readings in March. It was the fourth consecutive monthly rise in the index.

Economists surveyed by the Reuters news agency predicted that the index would rise to a reading of 113.0 in April.

The measure of the current state of the survey, based on consumers ’assessment of current business and labor market conditions, rose from 110.6 to 139.6 last month. But the index of expectations, based on short-term forecasts of consumer, business and labor market conditions, reached 109.8 in March from 108.3.

The U.S. has extended the right to vaccinate to American adults, and more than half of that population has had at least one dose of the COVID-19 vaccine, according to the U.S. Centers for Disease Control and Prevention. More than a third of U.S. adults are fully embedded.

Relieving anxiety about the $ 1.9 trillion pandemic rescue of the virus and the White House has once again allowed for greater economic engagement. Retail sales hit a record high in March and employers hired the most employees in seven months. Companies also invest in equipment to boost production.

A violent view of the labor market

The so-called Conference Board labor market differential, derived from data on respondents ’opinions about whether many jobs are difficult or difficult, reached a reading of 24.7, the highest in 13 months and higher in March than 8.

This measure is closely linked to the U.S. Department of Labor’s employment report, which looked closely at the unemployment rate and suggested the success of another month’s earnings in April. The number of Americans applying for new unemployment benefits has dropped to a 13-month low.

Federal Reserve officials meeting on Tuesday and Wednesday are likely to admit that the economic situation is improving, but the U.S. central bank believes it will maintain a very easy stance on its monetary policy, with jobs remaining at 8.4 million jobs below the February 2020 peak.

A photo taken by the government on Thursday of the first quarter’s gross domestic product is likely to show that the economy grew at a rate of 6.1 percent year-on-year in the first three months of the year, according to a survey of economists by Reuters. That would be the second-fastest growth since the third quarter of 2003 and would continue at a growth rate of 4.3 percent in the last three months of 2020 and an increase of 33.4 percent in the third quarter of last year.

The Conference Board survey found that the number of consumers who expected revenue growth over the next six months rose to 17.9 percent from 15.4 percent in March. The proportion that predicted the decline fell to 10.9 percent from 12.6 percent last month. It also showed more Americans planning to go on vacation over the next six months, as that share rose to 43.3 percent from 34 percent in February when homes were surveyed on the subject.

US housing market pushes for more accommodation for home offices and schools and low mortgage interest rates [File: Mark J Terrill/AP Photo]

Many intended to go to their destinations, especially in the US. This could give a major boost to the service industry as long as the pandemic is not affected. Consumers also planned to buy high-income items like cars and homes, but fewer were planning to buy large appliances compared to March.

Strong intentions to buy homes suggest that housing demand may continue to be accepted and prices may continue to rise as supply is tight. The housing market is in dire need of more accommodation for home offices and schools. Demographics show a strong housing market, with people between the ages of 26 and 34 accounting for about 12.5% ​​of the U.S. population.

“This suggests a noticeable tail of demand because the average first-time buyers are in their early 30s,” said Brady Seitz, an economist at Moody’s Analytics in West Chester, Pennsylvania.

Another report on Tuesday showed that the S&P CoreLogic Case-Shiller Home Price Index fell 12 percent in February from a year ago, the fastest in 15 years, after rising 11.2 percent in January.

Accelerating House Price Inflation A third report from the Federal Housing Finance Agency’s housing price index confirmed that year-on-year growth of 12.2% was recorded in February after a 12.1 per cent increase in February.