Political Wrangling Chills Consumer Confidence Along With Concern About the Labor Market – By Tim Smart (US News) / Feb 27, 2024
The drop was a reversal after three months of rising confidence.
Consumer confidence fell in February after a three-month rise as Americans expressed concern about the political environment and worries about a cooling in the labor market.
The Conference Board’s consumer confidence index fell to 106.7 from a downwardly revised 110.9 in January. That month’s number was originally estimated at 114.8. Economists had predicted the index would increase slightly.
The present situation index – a measure of the current economic environment dropped back to 147.2 from 154.9 in January, while the future-looking expectations index dipped to 79.8 from a revised 81.5 in January. A reading below 80 is often a signal of a recession within the next 12 months.
“The decline in consumer confidence in February interrupted a three-month rise, reflecting persistent uncertainty about the US economy,” said Dana Peterson, chief economist at the business organization. “The drop in confidence was broad-based, affecting all income groups except households earning less than $15,000 and those earning more than $125,000. Confidence deteriorated for consumers under the age of 35 and those 55 and over, whereas it improved slightly for those aged 35 to 54.”
