United States: Consumer confidence hits highest level in more than 15 years

After having moderated to 111.6 in January, the Conference Board’s consumer confidence index jumped to 114.8 in February, catching market analysts off guard as they had expected the indicator to fall further to 111.0. The index now rests at the highest level since July 2001.

According to the Conference Board, February’s notable improvement was the result of households’ more positive views of their present and future economic conditions. The gain in sentiment was the third in the last four months. While U.S. businesses continue adding workers to their payrolls, the pace of wage growth has moderated in recent months, especially at this point of the economic cycle.

While U.S. consumers are still waiting for the new administration to unveil its tax and health care plan, the majority of households expect the economy to continue expanding in the coming months.

FocusEconomics Consensus Forecast panelists expect private consumption to grow 2.6% in 2017, which is up 0.1 percentage points from last month’s forecast. For 2018, the panel sees private consumption increasing 2.4%.