United States: Consumer confidence slumps in February amid weaker expectations
February 24, 2015
The Conference Board consumer confidence index tumbled to 96.4 points in February from a revised 103.8 points in January (previously reported: 102.9 points). January’s reading had marked the highest point since August 2007. February’s result was weaker than the 99.1 points expected by the market and represented the largest monthly loss in 16 periods.
February’s decrease in confidence was driven by a notable deterioration in consumers’ expectations regarding business conditions over the next six month and a worsening in their outlook on the future of the job market. Consumers were also somewhat less upbeat about current economic conditions.
The director of the Board explained that, “after a large gain in January, consumer confidence retreated in February, but still remains at pre-recession levels. Despite this month’s decline, consumers remain confident that the economy will continue to expand at the current pace in the months ahead.”
Author: Carl Kelly, Economist