After sinking in January amid cost-of-living pressures, the Conference Board’s consumer confidence index rose by 2.2 points in February to 91.2, according to preliminary survey results through mid-month.
“Confidence ticked up in February after falling in January, as consumers’ pessimistic expectations for the future eased somewhat,” said Conference Board Chief Economist Dana Peterson, adding that the level is still “well-below” a four-year peak from November 2024.
Consumer confidence is closely watched in the United States, where consumer spending accounts for more than two-thirds of GDP. However, in recent years retail sales have sometimes surprised to the upside given downcast readings in terms of sentiment.
Some of the sub-components in Tuesday’s reports pointed in opposite directions.
For example, while more people described jobs as “plentiful” compared with January, there was also an uptick in the number of people characterising work as “hard to get.”
But the outlook for six months in the future improved from the January readings in terms of how consumers see business conditions, the labour market and their income prospects.
The report indicates consumers are “still concerned about the economy, but they no longer think it’s getting worse,” said Heather Long, chief economist at Navy Federal Credit Union.
“American consumers are frustrated about high prices and a lack of job opportunities, but the vibes are no longer getting worse,” Long said.
“February was the first uptick in sentiment in half a year and it’s notable that more people said they are considering buying a big-ticket item in the coming months.” (AFP)
Edited by Robert Kemp
