Consumer Confidence Slips, but Doesn't Evaporate

Updated from 11:02 a.m. EDT

Consumer confidence slipped in April amid worries about corporate profits and geopolitical events, while a measure of manufacturing activity in the Midwest fell slightly from a near two-year high.

The Conference Board's confidence index fell to 108.8 from a seven-month high of 110.2 in March, as Americans' expressed concern about the present, but still remained optimistic about the future. The results nudged past economists' expectations for a reading of 108, according to consensus estimates.

At the same time, the Institute for Supply Management's index of manufacturing activity in the Midwest dropped to 54.7 from 55.7 in March, but was basically in line with economists' expectations. A reading above 50 on the index signals expansion, while one below it suggests contraction.

Both reports still suggest the economy is in the early stages of a recovery and did not derail a morning rally. Lately, the

Dow

was up 105 points at 9,925, while the

Nasdaq

was ahead 18 points at 1,675.

"The retreat in confidence was caused primarily by a softening in consumers' assessment of current economic conditions," said Lynn Franco, head of the group's research center, in a statement. "Consumers' expectations remain virtually undaunted and signal continued expansion in the months ahead."

The present situation index, which gauges current sentiment, fell to 107 from 111.5 in March, while the expectations index, which tracks a six-month outlook, was basically unchanged at 110.

On Monday, the Commerce Department said consumer spending rose 0.4% in March -- its fourth straight monthly gain -- a sign that consumers remain resilient at the early stages of the recovery.