U.S. consumer confidence has slightly increased this month, including plans to buy big-ticket items, though outlook stayed well under a four-year high hit in November 2024.
The Conference Board’s monthly Consumer Confidence Index rose a little over two points to 91.2. Its separate Present Situation Index, though, continued a recent decline, falling about the same amount as the overall index rose to land at 120, and 12-month inflation expectations stayed high.
Looking to the next six months, consumers’ outlook improved about five points to 72.
“Confidence ticked up in February after falling in January, as consumers’ pessimistic expectations for the future eased somewhat,” said Dana Peterson, the nonprofit business membership and research group’s chief economist.
Big-ticket spending plans were concentrated among used vehicles, TVs and smart phones. New-vehicle buying plans were flat.
The board’s overall confidence index slumped to a two-decade low near the end of the Great Recession in 2009. It plunged again during the Covid pandemic, though not nearly as low, and dropped to that level again last year amid sustained inflation and new U.S. trade tariffs.
This month consumer views on employment rose by less than a percentage point, according to the report.
Among generations, consumer confidence fell for those 35 and older on a six-month rolling average basis, the board reported. It also fell in most income brackets, though it increased among Republican and independent voters.
Survey respondents’ written responses revealed the roots of their pessimism.
“Comments about prices, inflation, and the cost of goods remained at the top of [consumers’] minds,” said Peterson, who also noted more mentions of trade and political and immigration issues.
Considering their families’ financial situations, respondents’ views fell for both the present and future, though expectations of a recession receded.
DIG DEEPER: Reaping Recall Rewards