The labor market has showed signs of cooling after more Americans than forecast filed for unemployment benefits last week. Jobless claims fell to 388,000 from a revised 389,00 the prior week, the Labor Department reported.
Dimmer View of Finances
Today's report also showed that Americans were more pessimistic about their finances than in March. Views on finances weakened across all income groups, with 28 percent saying they were improved, down from 34 percent who said so last month.
Consumers in today's confidence report said they expect an inflation rate of 3.2 percent over the next 12 months, down from 3.9 percent in March.
Over the next five years, the figures tracked by Federal Reserve policy makers, Americans expected a 2.9 percent rate of inflation this month compared with 3 percent in March.
Along with signs of economic growth, consumers are coping with inflation in food and fuel, said Steven Burd, chief executive officer of Safeway Inc., a retail food and drug chain based in Pleasanton, California.
"I think there's a recovery under way and at the end of the day I think consumers see that and, you know, consumer confidence builds," Burd said in an April 26 earnings call. "If you can see a rise in home prices while interest rates are still low, that should actually bode well for consumer confidence in the future."