The Conference Board’s US Consumer Confidence Index Moves Lower in February

On Tuesday, the Conference Board, a non-partisan, not-for-profit think tank founded in 1916, released its Consumer Confidence Survey® for February.

• The Consumer Confidence Index® declined to a reading of 106.7 (1985=100) in February, down from January’s revised reading of 110.9 (originally 114.8). The Conference Board said that the revised January figure suggests that there was not a material breakout to the upside in confidence at the start of 2024.
• The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—declined to a reading of 147.2 (1985=100) in February, down from January’s reading of 154.9.
• The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—declined to a reading of 79.8 in February, down from January’s revised reading of 81.5. The Conference Board notes that any reading below 80 often signals recession ahead.

In remarks accompanying the release of the February results, Conference Board Chief Economist Dana Peterson said:

“The decline in consumer confidence in February interrupted a three-month rise, reflecting persistent uncertainty about the US economy. The drop in confidence was broad-based, affecting all income groups except households earning less than $15,000 and those earning more than $125,000. Confidence deteriorated for consumers under the age of 35 and those 55 and over, whereas it improved slightly for those aged 35 to 54.”