CB: US Consumer Confidence Rebounds in February

VIENNA (DTN) — U.S. consumer confidence rebounded in February, after hovering below the 90-point mark since November, the Conference Board said in a report Tuesday (2/24).

The Conference Board reported that its headline confidence index rose above analyst expectations to 91.2 this month. The index for January was revised higher 4.5 points to 89.0, from the preliminary reading of 84.5 points which marked a twelve-year low.

“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 (112.8).”

The confidence index is a gauge of the household optimism that fuels roughly 70% of the U.S. economy through personal spending and is closely watched by market analysts.

Consumers’ assessments of their current economic situation – the present situation index – continued to decline as consumer’s views of current business conditions worsened on net, falling 1.8 points to 120.0 in February. The expectations index, which gauges consumer’s short-term outlook on the economy, rose 4.8 points to 72.0, but remained well below the 80-point threshold that in the past had signaled a recession ahead.

Survey responses highlighted that rising living costs remained the primary source of economic stress for most households. “Consumers’ write-in responses on factors affecting the economy continued to skew towards pessimism. Comments about prices, inflation, and the cost of goods remained at the top of consumer’s minds”, Peterson said.

The U.S. dollar index briefly rose to 97.9 following the release of the report, and by the time of writing was up 0.23 points to 97.875 on the day.