Data from the US Consumer Confidence Index released today, Tuesday, by the Conference Board revealed that the index recorded a very negative reading during the current April, as the index reading came well below market expectations.

The data released a short while ago showed that the US Consumer Confidence Index recorded about 101.3 points, which is lower than market expectations that indicated it would record about 104.1 points. The previous reading of the US Consumer Confidence Index had recorded about 104.2 points during last March and was revised down to only 104.0 points.

It is worth noting that the US Consumer Confidence Index has a strong impact on financial markets, whether equity or bond markets, as consumer spending represents two-thirds of economic activity. Therefore, if the consumer is not confident in economic activity, they will not make purchases of goods, and thus confidence affects consumer spending, which naturally affects economic growth. Regarding stock markets, strong economic growth is reflected in improved corporate profits and rising stock prices.