WASHINGTON, April 29 (Xinhua) -- U.S. consumer confidence edged up a tad in April, but Americans remain uneasy about the impact of the Iran war on gas prices and their wallets.
A two-week ceasefire "likely helped ease concerns about financial indicators somewhat in April," but "consumers remained wary," according to the Consumer Confidence Index (CCI) released Tuesday by the Conference Board.
The index edged up by 0.6 points to 92.8 in April, from 92.2 in March's upwardly revised reading.
The survey period for this month's preliminary results was April 1-22, which included a temporary two-week ceasefire in the Iran conflict.
While noting the slight increase, economists warned that energy prices will increase and put a damper on consumer confidence if the war continues.
Dean Baker, co-founder of the Center for Economic and Policy Research, told Xinhua: "My guess is that people were feeling more optimistic about a quick end to the war ... If the war drags on, oil prices will rise further. That will dampen spending and confidence."
The relationship between U.S. consumer confidence and the Iran war remains mixed, with economists noting that other consumer surveys continue to languish.
Gary Hufbauer, a nonresident senior fellow at the Peterson Institute for International Economics, told Xinhua that while consumer confidence is up slightly, consumer sentiment -- a similar index -- "is still in the basement."
He was referring to the University of Michigan's Consumer Sentiment Index released earlier this month, which dropped 3.5 percent in April.
"I expect confidence to remain low as long as the price of oil remains near 100 (U.S. dollars per barrel)," Hufbauer said.
Surging gasoline prices remain the primary driver of consumer anxiety.
The national average for a gallon of gas stood at 4.176 dollars on Tuesday, up more than 1 dollar from the same period a year ago, according to the American Automobile Association.
Persistent inflation fueled by the war makes it unlikely that the Federal Reserve will cut interest rates at its upcoming meeting.
Higher rates, combined with war-driven inflation, continue to squeeze household budgets, leading consumers to prioritize staples over discretionary spending.
Consumers' write-in responses to the CCI continued to skew towards pessimism in April.
"Comments about prices, oil and gas, and war increased in frequency compared to March, a likely signal of consumers' underlying worries about how the war in the Middle East will impact their pockets," said the Conference Board report.
Tuesday saw Brent crude surpass 111 dollars a barrel, 50 percent higher than before the Iran conflict. ■