Pessimism About the Future Eases Slightly
The Consumer Confidence Index, which quantifies how U.S. consumers perceive current economic conditions and their outlook, improved in February.
The Conference Board, a U.S. economic research organization, announced on the 24th (local time) that the U.S. Consumer Confidence Index for February was 91.2 (1985=100), up 2.2 points from the previous month’s revised figure of 89.0.
The index also exceeded the consensus forecast of experts compiled by Dow Jones, which stood at 88.6.
The Present Situation Index, which reflects current business and labor market conditions, fell by 1.8 points from the previous month to 120.0, but this was offset by the Expectations Index, which reflects consumers’ short-term outlook and rose 4.8 points from the previous month to 72.0.
However, the Expectations Index remained below 80, a range that is generally regarded as signaling that a recession may be looming.
The February Consumer Confidence Index is based on survey responses collected through February 17 and therefore does not reflect developments after the U.S. Supreme Court’s February 20 ruling that reciprocal tariffs are illegal.
Dana Peterson, chief economist at the Conference Board, said, "Consumer confidence rose slightly in February as consumers’ pessimism about the future eased somewhat," adding, "However, it still remains significantly below the recent four-year peak of 112.8 recorded in November 2024."
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