Piper Sandler Chief Global Economist Nancy Lazar analyzes surging consumer confidence, the job market and more on ‘Making Money.’
Consumer confidence ticked higher in February as American households’ expectations for the labor market improved.
The Conference Board’s consumer confidence index rose 2.2 points to 91.2 in February from an upwardly revised 89 in January. The January data was initially reported as 84.5, the lowest level since May 2014.
Economists polled by LSEG estimated the February reading for the index would come in at 87.
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“Confidence ticked up in February after falling in January, as consumers’ pessimistic expectations for the future eased somewhat,” said Dana M. Peterson, chief economist at The Conference Board.
“Four of five components of the Index firmed. Nonetheless, the measure remained well below the four-year peak achieved in November 2024,” Peterson added.
The Conference Board found that consumer confidence rose in February from the prior month, though it remains well below a 2024 peak. (Gabby Jones/Getty Images)
The Conference Board’s present situation index declined overall, with views of current business conditions dipping to 0.7%.
Perceptions of employment conditions improved slightly, with the labor market differential, the share of consumers saying jobs are “plentiful” minus the share saying they’re “hard to get,” increasing by 0.6 percentage points to 7.4%.
All three components of the Conference Board’s expectations index increased slightly, with expectations for business and labor market conditions six months from now less negative than they were previously, while expectations for incomes were more positive.
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Consumer confidence rose among Republicans and Independents, while it continued to decline for Democrats. (J. David Ake/Getty Images)
Younger consumers were the most optimistic among age groups, with their confidence ticking upward on a six-month moving average basis in February among those under the age of 35. Confidence edged lower among those age 35 and older.
While consumer confidence rose among Generation Z respondents, in line with the findings among those under 35, it declined across older generations included in the report.
Consumer confidence based on political affiliation rose among Republican and Independent voters in February after a decline in January, while Democrats were less optimistic than a month ago.
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The report showed consumers were more confident about the labor market in February’s preliminary data. (Joe Raedle/Getty Images)
“Consumers’ write-in responses on factors affecting the economy continued to skew toward 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. Labor market mentions eased a bit in February, while observations about immigration eased somewhat.”
Consumers’ views of their family’s current financial situation declined after surging unexpectedly in January in the final data, though expectations about their family’s future financial situation continued to be less optimistic.
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Plans to purchase big-ticket items in the next six months rose in February, with the share of respondents who replied “yes” and “maybe” increasing and the share of those saying “no” declining. Used cars, furniture, TVs and smartphones were the most popular items within their categories for future purchases.
