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Friday, 04/29/2016 12:01:29 PM

Friday, April 29, 2016 12:01:29 PM

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A closely watched gauge of U.S. consumer sentiment declined in April to its lowest level in seven months, the latest evidence of growing worry about the economy's momentum.
The University of Michigan final consumer-sentiment index for April, released on Friday, was 89.0, down from March's final reading of 91.0 and the lowest level since September.
"Consumer sentiment continued its slow decline in late April due to weakening expectations for future growth, although their views of current economic conditions remained positive," said Richard Curtin , the survey's chief economist.
The details of Friday's report were mixed. The index tracking consumer views of current economic conditions edged up to 106.7 from 105.6 in March. But the expectations gauge dropped to 77.6 in April from 81.5 the prior month, hitting its lowest level since September 2014 .
"The size of the decline, while troublesome, is still far short of indicating an impending recession," Mr. Curtin cautioned.
A preliminary April overall-sentiment reading of 89.7 was announced in mid-April. Economists surveyed by The Wall Street Journal had expected a final April reading of 90.0.
It was the fourth consecutive month that the headline sentiment index declined.
A separate gauge of U.S. household attitudes, the Conference Board's consumer-confidence index, dipped in April to 94.2 from 96.1 in March, the group reported earlier this week. That report showed slightly fewer people saying that they planned to take a vacation or buy a car, home or major household appliance within the next six months.
Financial markets have regained their footing after early-2016 volatility, and the U.S. job market has continued to post solid gains. But consumer-spending growth has been modest in recent months, and overall economic activity has slowed.
"Growth in household spending has moderated, although households' real income has risen at a solid rate and consumer sentiment remains high," the Federal Reserve said Wednesday in a statement announcing no change in its policy interest rate.
Friday's report also offered mixed signals on public expectations for U.S. inflation, which has undershot the Fed's 2% annual target for nearly four years.
Consumers in April expected an inflation rate of 2.8% over the next year, up from 2.7% in March. But expectations for inflation five to 10 years out slipped to 2.5% from 2.7% the prior month, matching the lowest level in the survey's history.
"It is still my judgment that inflation expectations are well anchored, but...continued low readings for some indicators of expected inflation do concern me," Fed Chairwoman Janet Yellen said in a late-March speech.

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