CNN reported on the Conference Board’s latest survey data, which found that the U.S. Consumer Confidence Index. Dropped in February last. amid rising interest rates causing concern that High interest rates trigger a potential recession.
The report states that US Consumer Confidence Index in February from the sample It dropped from 106 in January to 102.9, bucking Refinitiv economists’ expectations for the Headline Consumer Index to measure around 108.5.
Conference Board Consumer Confidence Report for February Comes amid reports of US economic data. that is still strong in many aspects This includes the employment report showing a whopping 517,000 jobs were added in January.
However, February’s consumer confidence in their current job opportunities rose 48.2% from 46.4% in January. Still, that sentiment has waned over the next six months.
Ataman Ozyildirim, the Conference Board’s senior director of economics, said in a statement: The overall trend appears to be more negative looking ahead. Expectations about job titles, income and business conditions in the next 6 months. Fell sharply in February.
The expectations index fell to 69.7, its lowest level since July 2022, when gas prices hit record highs. And inflation is hitting a 40-year high, with statistics below 80 often signaling a recession within the next year.
Chris Rupkey of FwdBonds said that in the case of the consumer being the main driver of the economy. The economic outlook for 2023 is bleak as the worst consumer expectations are yet to come. Despite the massive 517,000 new jobs reported in January, the current conditions, especially in the labor market, look very good. But the future path of the economy still has uncertain factors to worry about.
However, in addition to a slight increase in current forecasts, (The current index rose to 150.9 from 147.4.) Consumer inflation expectations for February also showed a downward trend, falling to 6.3% from a previous forecast of 6.7% for the next 12 months.
Ozyildirim stated that in a February survey, Consumers may show early signs of reducing spending. in the face of higher prices and interest rates Decrease in consumers planning to buy a house or car And there seems to be a reduction in the purchase plan of main electrical appliances. Including the willingness to plan travel during the holidays also decreased.
The Conference Board Confidence Index and the University of Michigan’s twice-monthly Consumer Confidence Index report. It is the leading measure of consumer attitudes towards the current and future health of the economy. Although both indices generally track information in the same way, they are different. But the consumer confidence index is influenced by employment. and labor market conditions over While the Michigan Confidence Index focuses on household finances, and the effects of inflation over
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