U.S. consumer confidence rose slightly in April, even as Americans faced higher gasoline prices and rising inflation.
The Conference Board said Tuesday that its Consumer Confidence Index increased to 92.8 in April, up from an upwardly revised 92.2 in March. The reading beat economists’ expectations of 89, according to surveys cited by Bloomberg and The Wall Street Journal.
The increase came despite growing concern about prices, oil, gas, and the war. The national average for a gallon of gasoline climbed to $4.18 this week, up more than $1 since before the war began.
“Consumer confidence edged up in April but was overall little changed, despite material concern about rising gasoline prices as the war in the Middle East prompted a surge in Brent crude oil prices,” said Dana M. Peterson, chief economist at The Conference Board.
The modest gain was driven by a stronger labor market outlook. The Expectations Index, which measures consumers’ six-month view of income, business, and labor market conditions, rose 1.2 points to 72.2.
Consumers also appeared slightly more confident about finding work. The share of respondents who said jobs were “hard to get” fell to 19.8 percent, down from 21.3 percent in March.
Still, the expectations reading remained below 80 for the 15th straight month. The Conference Board says that level can signal a possible recession ahead.
The Present Situation Index, which measures consumers’ view of current economic conditions, slipped to 123.8 from 124.1. Consumers’ views of current business conditions weakened, and more respondents said a recession over the next year is “very likely.”
The report reflects a divided economic picture. Americans appear more comfortable with the labor market, but they remain under pressure from high prices.
Consumer prices rose 3.3 percent in March from a year earlier, up sharply from 2.4 percent in February, according to the Labor Department. Prices rose 0.9 percent from February to March, the largest monthly increase in nearly four years.
The gasoline spike has created a new challenge for the Federal Reserve, which is trying to bring inflation back to its 2 percent target. Higher fuel costs can squeeze household budgets and make it harder for families to pay for groceries, rent, and utilities.
“Consumers are singing the blues,” said Heather Long, chief economist at Navy Federal Credit Union. “They aren’t happy with high prices for gas, housing, electricity and many other items.”
The Fed is widely expected to leave interest rates unchanged at the end of its two-day meeting Wednesday. Officials cut rates three times at the end of 2025, but renewed inflation pressure could make further cuts harder to justify.
The Conference Board report also stood in contrast to the University of Michigan’s consumer sentiment survey, which fell to a record low in April. The gap may show that Americans still feel secure about their jobs, even as they feel squeezed by prices.
That split could explain why consumer spending has remained steady despite weak sentiment readings. Retail sales rose strongly in March, and recent corporate earnings reports have shown that consumer demand remains firm.
For now, Americans are not showing full confidence in the economy. But the April report suggests that a resilient jobs market is helping offset some of the pressure from war, inflation, and higher gasoline prices.