The Conference Board Consumer Confidence Index (preliminary results with February 17 cutoff) rose by 2.2 points in February to 91.2, from an upwardly revised 89 in January. This beat the expectation of 87.1. The Present Situation Index, based on consumers’ assessment of current business and labor market conditions, decreased by 1.8 points to 120 in February, from a revised 121.8. The Expectations Index, based on consumers’ short-term outlook for income, business, and labor market conditions, rose 4.8 points to 72, still below the threshold of 80, which usually signals a recession ahead.
ABA’s Office of the Chief Economist believes that February’s preliminary results showed confidence has improved from the January low, supported by stabilizing labor market conditions. As consumers’ concern over expectations for the future eases, demand for consumer credit could stay resilient in the near term.
