Consumer Confidence Declines for Second Consecutive Month in February

The Conference Board, a non-partisan, not-for-profit think tank, founded in 1916, released today (2-22-22) their Consumer Confidence Index® (CCI) for February 2022. The CCI decreased slightly in February, after a decline in January. The Index now stands at 110.5 (1985=100), down from 111.1 in January.

The Present Situation Index—based on consumers’ assessment of current business and labor market conditions improved to 145.1 from 144.5 last month. While the Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—declined to 87.5 from 88.8.

In a statement prepared for the release of this month’s CCI, Lynn Franco, Senior Director of Economic Indicators at The Conference Board said, “Consumer confidence was down slightly for a second consecutive month in February. The Present Situation Index improved a touch, suggesting the economy continued to expand in Q1 but did not gain momentum. Expectations about short-term growth prospects weakened further, pointing to a likely moderation in growth over the first half of 2022. Meanwhile, the proportion of consumers planning to purchase homes, automobiles, major appliances, and vacations over the next six months all fell.”

Franco added, “Concerns about inflation rose again in February, after posting back-to-back declines. Despite this reversal, consumers remain relatively confident about short-term growth prospects. While they do not expect the economy to pick up steam in the near future, they also do not foresee conditions worsening. Nevertheless, confidence and consumer spending will continue to face headwinds from rising prices in the coming months.”