U.S. consumer confidence rebounded in April and new home sales increased more than expected in March, pointing to underlying strength in the economy despite signs that growth slowed in the first quarter.
Other data on Tuesday also showed house prices increasing solidly in February. Strong consumer confidence and rising house prices bode well for an acceleration in consumer spending in the second quarter after it braked sharply at the start of the year.
The Conference Board said its consumer confidence index increased to a reading of 128.7 this month from 127.0 in March. Consumers’ short-term expectations also improved, with the share of consumers expecting their incomes to decline over the coming months reaching its lowest level since December 2000.