Consumer Confidence Index Still Rising

Consumer confidence, a key indicator of future economic activity, rose for the sixth straight month in April, the Conference Board said. The business-financed study group said its consumer confidence index rose nearly a full point to 134.9 from a revised 134 in March, a stronger performance than Wall Street analysts had expected. An index designed to measure consumer expectations for the next six to nine months had an even bigger increase, rising to 108 from 105.5. Economists had expected the consumer confidence figure to remain flat in April. However, the index continued the steady rise begun with the rebound of the stock market from last fall’s sharp downturn. A high employment level and low inflation also continues to boost confidence.

In another sign of economic strength, the National Assn. of Realtors said sales of existing single-family homes rose to a record high in March. The annualized rate of 5.05 million units in March, up from February’s 5.02 million rate, broke the previous high of 5.04 million set in January. The figures are adjusted for seasonal variations. The record sales pace at the outset of 1999 follows an unprecedented 4.78 million existing-home sales in 1998. James Annable, chief economist at BankOne Corp. in Chicago, said the surge in consumer confidence and the robust economy can be attributed to a strong increase in real wages.