Consumer confidence rebounds
U.S. consumers were feeling more confident about the economy in February amid decreased volatility in the stock market and the end of the partial government shutdown.
The Conference Board’s consumer confidence index rose to 131.4 in February, up from 121.7 in January. The increase followed three months of consecutive declines.
The present situation index – based on consumers’ assessment of current business and labor market conditions – also improved, up to 173.5 from 170.2. The expectations index – based on consumers’ short-term outlook for income, business and labor market conditions – increased from 89.4 in January to 103.4 this month.
“The present situation Index improved, as consumers continue to view both business and labor market conditions favorably,” said Lynn Franco, senior director of economic indicators at The Conference Board. “Expectations, which had been negatively impacted in recent months by financial market volatility and the government shutdown, recovered in February. Looking ahead, consumers expect the economy to continue expanding.”
However, Franco added, according to The Conference Board’s economic forecasts, the pace of expansion is expected to moderate in 2019.
Consumers’ appraisal of current conditions improved moderately in February. Those stating business conditions are “good” increased from 36.4% in January to 41.2 in February. Those saying business conditions are “bad” was unchanged at 10.8%.
Consumers’ optimism about the short-term future rebounded in February. The percentage of consumers expecting business conditions will improve over the next six months increased from 16.3% in January to 19.7% in February. Those expecting business conditions will worsen decreased from 13.8% to 8.9%.
Consumers’ outlook for the labor market was also more favorable. The proportion expecting more jobs in the months ahead increased from 15.3% in January to 18.5 in February, while those anticipating fewer jobs declined, from 16.2% to 12.2%.
The Conference Board’s consumer confidence index rose to 131.4 in February, up from 121.7 in January. The increase followed three months of consecutive declines.
The present situation index – based on consumers’ assessment of current business and labor market conditions – also improved, up to 173.5 from 170.2. The expectations index – based on consumers’ short-term outlook for income, business and labor market conditions – increased from 89.4 in January to 103.4 this month.
“The present situation Index improved, as consumers continue to view both business and labor market conditions favorably,” said Lynn Franco, senior director of economic indicators at The Conference Board. “Expectations, which had been negatively impacted in recent months by financial market volatility and the government shutdown, recovered in February. Looking ahead, consumers expect the economy to continue expanding.”
However, Franco added, according to The Conference Board’s economic forecasts, the pace of expansion is expected to moderate in 2019.
Consumers’ appraisal of current conditions improved moderately in February. Those stating business conditions are “good” increased from 36.4% in January to 41.2 in February. Those saying business conditions are “bad” was unchanged at 10.8%.
Consumers’ optimism about the short-term future rebounded in February. The percentage of consumers expecting business conditions will improve over the next six months increased from 16.3% in January to 19.7% in February. Those expecting business conditions will worsen decreased from 13.8% to 8.9%.
Consumers’ outlook for the labor market was also more favorable. The proportion expecting more jobs in the months ahead increased from 15.3% in January to 18.5 in February, while those anticipating fewer jobs declined, from 16.2% to 12.2%.