A report released by the Conference Board on Tuesday showed an improvement in U.S. consumer confidence in the month of February.
The Conference Board said its consumer confidence index rose to 91.2 in February from an upwardly revised 89.0 in January. Economists had expected the index to jump to 88.0 from the 84.5 originally reported for the previous month.
“Confidence ticked up in February after falling in January, as consumers’ pessimistic expectations for the future eased somewhat,” said Dana M Peterson, Chief Economist, The Conference Board.
“Four of five components of the Index firmed,” she added. “Nonetheless, the measure remained well below the four-year peak achieved in November 2024 (112.8).”
The increase by the headline index reflected the improvement in expectations, as the expectations index shot up to 72.0 in February from 67.2 in January.
The Conference Board noted expectations for business and labor market conditions six months from now were less negative, while expectations for incomes were more positive.
Meanwhile, the report showed a continued decrease by the present situation index, which fell to 120.0 in February from 121.8 in January.
“Consumers’ write-in responses on factors affecting the economy continued to skew towards pessimism,” Peterson said. “Comments about prices, inflation, and the cost of goods remained at the top of consumer’s minds.”
“Mentions of trade and politics also increased in February,” she continued. “Labor market mentions eased a bit in February, while observations about immigration increased somewhat.”
A separate report released by the University of Michigan last Friday showed consumer sentiment in the U.S. improved by much less than previously estimated in the month of February.
The University of Michigan said its consumer sentiment index for February was downwardly revised to 56.6 from a preliminary reading of 57.3. Economists had expected the index to be unrevised.
With the unexpected downward revision, the consumer sentiment index is just above the January reading of 56.4 but still at its highest level in six months.
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