U.S. consumer confidence dipped a bit in April, as was expected.

The U.S. Conference Board’s Consumer Confidence Index, which surged in March, now stands at 108.8, down from 110.7 in March.

“This month’s retreat in confidence was caused primarily by a softening in consumers’ assessment of current economic conditions,” says Lynn Franco, Director of The Conference Board’s Consumer Research Center. “Consumers’ expectations remain virtually undaunted and signal continued expansion in the months ahead.”

“The level is essentially unchanged from last year at this time and can be described as ‘reasonably healthy’, ” comments BMO Nesbitt Burns.”It’s interesting to note that consumers’ assessment of the current situation has dropped nearly 50 points in the last twelve months. Their expectations for the future rose more than 30 points in that span. Thus, much like the stock market rally since 9/11, households are keeping a stiff upper lip and their maintenance of confidence rests on hope rather than on a hard-and-fast perception of improving reality in their daily lives.”

BMO Nesbitt says that the numbers contained little that was new or market-moving, “with the upbeat buying plans components suggesting retail spending will maintain some momentum”. It also says that the report leaves the door open for a higher unemployment rate without increasing the odds on that outcome materially.

“It looks like the drop in bond yields has produced a minor snapback in buying plans for houses and cars. We are much more comfortable about the recovery if yields stay low.”