The Conference Board Consumer Confidence Index increased in February to 114.8, from 111.6 in January. The Present Situation Index increased from 130 last month to 133.4, while the Expectations Index increased from 99.3 last month to 102.4.
“Consumer confidence increased in February and remains at a 15-year high (July 2001, 116.3),” said Lynn Franco, director of economic indicators at The Conference Board. “Consumers rated current business and labor market conditions more favorably this month than in January. Expectations improved regarding the short-term outlook for business, and to a lesser degree jobs and income prospects. Overall, consumers expect the economy to continue expanding in the months ahead.”
Consumers’ assessment of current conditions held relatively steady in February. Those saying business conditions are “good” declined slightly from 29 percent to 28.7 percent, while those saying business conditions are “bad” also decreased, from 15.9 percent to 13.2 percent. Consumers’ assessment of the labor market was also mixed. Those stating jobs are “plentiful” declined from 27.1 percent to 26.2 percent, while those claiming jobs are “hard to get” also decreased, from 21.1 percent to 20.3 percent.
Consumers were more optimistic about the short-term outlook in February. The percentage of consumers expecting business conditions to improve over the next six months increased from 22.9 percent to 24 percent, however those expecting business conditions to worsen also rose slightly from 10.8 percent to 11.1 percent.
Consumers’ outlook for the labor market was also moderately more upbeat. The proportion expecting more jobs in the months ahead increased from 19.7 percent to 20.4 percent, while those anticipating fewer jobs declined from 14.4 percent to 13.6 percent. The percentage of consumers expecting their incomes to increase rose marginally from 18.1 percent to 18.3 percent, while the proportion expecting a decrease declined from 9.4 percent to 8.2 percent.
