Consumer confidence improved in February

The Conference Board said its consumer confidence index rose to 91.2 in February from an upwardly revised 89 in January, while the expectations index climbed to 72.0; consumers continued to cite prices and inflation as top concerns.

The Conference Board reported a modest increase in consumer confidence for February, with the headline index rising to 91.2 from an upwardly revised 89 in January. The reading remains below the highs seen in late 2024. Consumers continued to list prices, inflation and the cost of goods among their main concerns, and mentions of trade and politics also rose. The survey’s preliminary cutoff date was Feb. 17. Key findings: - The Conference Board’s headline consumer confidence index rose to 91.2 in February from 89 in January. - The expectations index, which reflects short-term outlook for income, business and labor market conditions, increased by 4.8 points to 72.0. - Consumers’ assessment of current business and labor-market conditions fell 1.8 points to 120.0. - The labor market differential (share saying jobs are “plentiful” minus those saying jobs are “hard to get”) rose 0.6 percentage points to +7.4%. - A separate University of Michigan survey also showed a slight improvement in February, while the Federal Reserve’s preferred inflation gauge, the PCE price index, rose 0.4% in December. Summary: The February survey shows a small improvement in overall consumer sentiment alongside mixed signals on current conditions and modestly better short-term expectations. Inflation and prices remain prominent concerns, and recent inflation data have been cited by officials as a factor in deliberations about monetary policy. Undetermined at this time.