Consumer Confidence Rises in February
Consumer confidence saw an uptick in February, with more Americans feeling positive about job opportunities and showing reduced pessimism regarding the economy, based on data from the Conference Board released on Tuesday.
The share of consumers stating that jobs are plentiful increased to 28%, marking its highest level in three months, up from 25.8% in January. The Conference Board’s Consumer Confidence Index climbed by 2.2 points to 91.2, an upward revision from January’s figure of 89.0. Particularly noteworthy is the consumer expectations index, which recorded a 4.8-point rise to 72.0, representing the largest monthly jump since July.
This rise in confidence was predominantly observed among younger Americans. Those under 35, including Gen Z, reported increased optimism, while older respondents showed a decline in confidence. The Conference Board noted that younger individuals remain the most hopeful, with Gen Z’s confidence improving on a six-month rolling average, contrasting with declines among older generations.
There was a decrease in the number of consumers anticipating job losses in the next six months, with 26.1% fearing fewer job opportunities, down from 28.7% the previous month. Income expectations also saw a slight increase, with 17.3% expecting a rise in income versus 12.3% anticipating a decrease.
“Confidence improved in February after a drop in January, as consumers’ negative expectations for the future lessened somewhat,” commented Dana M. Peterson, chief economist at the Conference Board. “Four out of the five components of the index were robust.”
Interestingly, inflation expectations remained steady, with some consumers feeling “very likely” about facing a recession in the next year decreasing, though those who found it “unlikely” rose.
February’s figures are still significantly below the four-year high of 112.8 recorded in November 2024, shortly following President Donald Trump’s reelection. The current situation index dropped by 1.8 points to 120.0, attributed to waning business confidence. Nonetheless, the three indicators related to future expectations have shown improvement, suggesting consumers are less negative about the outlook for business and the job market.
Furthermore, plans to purchase significant items within the next six months have risen in February. Car purchases are trending upward; consumers seem to be leaning towards used cars. While expectations for home purchases decreased on a six-month basis, they still surpassed last year’s levels.
This data was collected prior to the recent Supreme Court tariff decision.
