Consumer confidence in the US has declined sharply in February, falling to its lowest level since June 2024, according to a report by The Conference Board. The Conference Board’s Consumer Confidence Index decreased by 7.0 points to 98.3, indicating pessimism about the future.
The decline was broad-based across all age groups and income levels, with the exception of households earning less than $15,000 per year and those between $100,000-125,000. Consumers’ views of their current financial situation also became less positive, with assessments of family finances weakening.
The Expectations Index, which measures consumers’ short-term outlook for income and business conditions, dropped 9.3 points to 72.9, its lowest level since August 2021. This has sparked concerns about a potential recession ahead, as the index is below the threshold of 80 that usually signals a recession.
Average 12-month inflation expectations surged from 5.2% to 6%, and consumers’ pessimism about future employment prospects worsened to a ten-month high. The proportion of consumers anticipating a recession over the next 12 months increased to a nine-month high, while bullishness about the stock market retreated, with only 46.8% expecting stock prices to increase.
The Consumer Confidence Survey is conducted by Toluna and is based on an online sample of over 36 million consumers. The report’s senior economist, Stephanie Guichard, stated that the decline in confidence was shared across all age groups but was deepest among consumers between 35 and 55 years old.
Overall, the data suggests a concerning trend in consumer sentiment, with many Americans expressing pessimism about the future.
Source: https://www.prnewswire.com/news-releases/us-consumer-confidence-dropped-sharply-in-february-302384647.html