Piper Sandler Chief Economist Global Nancy Lazar analyzes rising consumer confidence, the job market and more in ‘Making Money.’
Consumer confidence marked a high in February as American households’ expectations for the job market improved.
The Conference Board’s consumer confidence index rose 2.2 points to 91.2 in February from a revised high of 89 in January. January’s data was initially reported as 84.5, the lowest level since May 2014.
Economists polled by LSEG estimate that the reading for the index in February will reach 87.
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“Confidence fell in February after falling in January, as consumers did not buy hopeless hopes so that the future is a little bit better,” said Dana M. Peterson, economist at The Conference Board.
“Four-fifths of the Index was confirmed. However, the average remained below the four-year high reached in November 2024,” Peterson added.
The Conference Board found that consumer confidence rose in February from the previous month, although it remained below the peak of 2024. (Gabby Jones/Getty Images)
The Conference Board’s current status indicator is down overall, from the current perspective business conditions increased to 0.7%.
Ideas of working conditions slightly improved, by labor market breakdown, the share of consumers saying jobs are “plenty” minus the share saying they are “hard to find,” rising 0.6 percentage points to 7.4%.
All three components of the Conference Board’s expectations index rose slightly, with expectations for business and labor market conditions six months from now weaker than ever, while expectations for income were more positive.
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Consumer confidence rose among Republicans and Independents, while it continued to decline among Democrats. (J. David Ake/Getty Images)
Small buyers they were more optimistic among age groups, with their confidence rising above a six-month moving average base in February among those under 35. Self-esteem has declined among those aged 35 and over.
While consumer confidence rose among Generation Z respondents, consistent with findings for the under-35s, it declined for the older generations included in the report.
Consumer confidence is supported to associate with politics rose among Republican and independent voters in February after declining in January, while Democrats were less optimistic than last month.
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The report showed consumers were more confident about the job market in early February data. (Joe Raedle/Getty Images)
“Underwritten consumer responses to economic factors continued to lean toward pessimism,” Peterson said. “Comments about prices, inflation and the cost of goods remained high in the minds of consumers.
“It’s about trade and politics and increased in February. The labor market report eased slightly in February, while the observation of immigrants fell slightly. “
Consumers’ views about their family’s current financial situation fell after unexpectedly rising in January in the latest data, although expectations about their family’s future financial situation continued to be less optimistic.
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Purchase plans big ticket items in the next six months increased in February, with the share of respondents who answered “yes” and “maybe” increasing and the share of those who said “no” decreasing. Used cars, furniture, TVs and smartphones were the most popular items among their future purchase categories.
