Consumer confidence increases more than expected in April

The index is still well below the 90 reading that would reflect a healthy economy — that level hasn’t been hit since before the recession started in December 2007. 

Fuel costs may be tugging at larger increases in confidence as gasoline prices eclipse $4 a gallon in some areas. 

Still, the addition of more than 200,000 jobs in March and a drop in the unemployment rate to a two-year low of 8.8 percent is likely providing enough of a boost to overcome inflation concerns, economists estimate. 

Consumer spending accounts for about 70 percent of U.S. economic activity and must play a key role in the nation’s gradual economic recovery. 

Consumers’ assessment of the labor market was more favorable, with those saying jobs are “hard to get” declining to 41.8 percent from 44.4 percent and those stating jobs are “plentiful” increasing to 5.2 percent from 4.6 percent.

Consumers were mixed about the labor market outlook for the next six months. 

Those expecting more jobs in the months ahead declined to 17.5 percent from 19.6 percent, while those anticipating fewer jobs declined to 19.0 percent from 20.5 percent. 

Those responding expecting an increase in their income improved to 16.7 percent from 15.2 percent.

Overall, the outlook for the next six months improved slightly, with expectations rising to 82.6 percent from 81.3 percent last month. 

For the seventh straight month, consumers’ outlook improved on current economic conditions, increasing to 39.6 percent from 37.5 percent. 

Those saying conditions are “good” decreased slightly to 14.8 percent from 15 percent. Those stating business conditions are “bad” also declined slightly, to 36.4 percent from 36.6 percent. 

The report contained one positive bit of news for the housing market, as those who say they’re planning to buy a house over the next six months increasing to 5.5 percent, matching the record high reached in January 1978.