US consumer confidence slipped in April to its lowest since last August, reflecting worries that rising petrol prices could ignite inflation and crimp economic growth, a report showed today.
The Conference Board said its index of consumer sentiment fell to 104.0 from an upwardly revised 108.2 in March. "Rising prices at the petrol pump continue to play a key role in dampening consumers' short-term expectations.
The decline in the Present Situation Index - the first decline in six months - warrants monitoring in the months ahead, as further declines would suggest a softening in growth," said Lynn Franco, director of The Conference Board Consumer Research Center, in a press release.
Consumers' inflation expectations in the survey rose to their highest since August. Treasury bond prices rallied soon after the report was released, also reacting to a weak existing home sales report. The dollar .slipped and U.S. stock indexes turned lower.
The business research group's present situation index declined to 131.3 in April from 138.5 in March, the first fall in six months.
The expectations index declined to 85.8 from 87.9. Inflation expectations rose to the highest since August: Consumers' expectations for the inflation rate 12 months from now rose to 5.2 per cent from 4.9 per cent in March.