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Consumers are still confident in the U.S. economy, but not as confident as they were a year ago.
The numbers: A measure of what Americans think about the economy fell slightly in April but remained at healthy levels, a sign of guarded optimism after a slowdown in U.S. growth since late last year.
The consumer sentiment survey slipped to a preliminary 96.9 in April from 98.4 in March, the University Michigan said Friday. Economists surveyed by MarketWatch had forecast a reading of 97.5 reading.
Consumer sentiment is now slightly below year-ago levels. Last year sentiment hit a 14-year high of 101.4.
What happened: Consumers complained more about rising prices for homes and new cars and trucks. The effects of the Trump tax cuts have also faded after more favorable views a year earlier.
Americans were heartened by rising incomes — they are increasing at the fastest pace in nearly a decade — and stable inflation.
Read: It’s hard to believe, but the U.S. has experienced quarter-century of low inflation
Big picture:The U.S. economy appears to be moving sideways now after a dip in growth earlier in the year. yet most economists predict that the strong labor market will fuel more consumer spending in the spring and spur the U.S. to grow somewhat faster.
Read: Is the tax code fair? Trump tax cuts trigger biggest partisan rift in 20 years
What they are saying?: “Consumer sentiment ticked down, but is still at a high level and signals consumer spending should increase in months to come,” said Robert Frick, corporate economist at Navy Federal Credit Union.
Market reaction: The Dow Jones Industrial Average DJIA, +0.72% and S&P 500 SPX, +0.41% were set to open sharply in Friday trades. Investors appeared more optimistic about a U.S. trade deal with China and an improving Chinese economy.
The 10-year Treasury yield TMUBMUSD10Y, +2.11% rose a few ticks to 2.54%. Yields are much lower compared to late last year, when they hit a seven-year high of 3.23%.
