Consumer confidence rose considerably over the past two weeks, according to the HPS-CivicScience Economic Sentiment Index (ESI). Following a fairly stable month of March, the ESI experienced a 1.9 point increase during this first reading of April, rising to 53.0— a new high for 2019.
All of the ESI’s five indicators increased during the reading period. Consumer confidence in making a major purchase reached its highest level in a year of 55.3, an increase of 3.2 points from the previous reading. This increase was matched by a rise in consumer confidence in the housing market, which also rose by 3.2 points from 47.8 to 50.9 points. Economic sentiment toward personal finances also jumped, moving up by 2.7 points to 65.1. Confidence in the labor market and the broader economy increased slightly, rising by just 0.3 points and 0.2 points, respectively.
The increasing confidence in making a major purchase comes amid early reports of a strong housing market. As The Wall Street Journal reported recently, this spring season is “shaping up to be the best in years” as mortgage rates fall, home inventory rises, and the rate of home price growth steadies.