US consumer confidence unexpectedly rose in April amid an improvement in labor market perceptions, though there were concerns about elevated gasoline prices driven by the Middle East conflict, a survey by the Conference Board showed Tuesday.
The consumer confidence index moved up to 92.8 this month from March's upwardly revised reading of 92.2. The consensus was for an 89 print in a Bloomberg survey. The Conference Board said its survey ran from April 1 through April 22, a period that included a temporary two-week ceasefire in the Middle East conflict starting April 8.
"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," Conference Board Chief Economist Dana Peterson said.
Consumer appraisals of current and expected business conditions fell this month, offset by "modest improvements" in perceptions of the labor market, both existing and projected, as well as income expectations, Peterson said.
Energy prices have surged following the US-Israel war with Iran that started at the end of February, with the crucial Strait of Hormuz effectively closed. The narrow waterway is the world's most important chokepoint for crude flows. The conflict paused following a recent ceasefire between the US and Iran and later between Israel and Lebanon.
US retail gasoline prices averaged $4.176 per gallon Tuesday, compared with $3.150 a year ago, according to data from AAA, a travel organization that tracks fuel prices in the country.
The present situation measure dropped 0.3 points sequentially to 123.8 in April, while the expectations component increased 1.2 points to 72.2, the Conference Board said.
Consumers' average and median one-year inflation expectations "ticked downward" this month, but remained elevated, according to the survey.
On Friday, a survey by the University of Michigan showed that US consumer sentiment this month improved from an initial April estimate, but remained at a record low as near-term inflation expectations logged the biggest monthly increase in a year.