Conference Board data show rising confidence among younger Americans and fewer fears of job losses despite mixed views on current business conditions.
By yourNEWS Media Newsroom
Consumer confidence improved in February, driven by stronger perceptions of job availability and easing concerns about the economic outlook, according to new data released Tuesday by the Conference Board.
The organization’s Consumer Confidence Index rose 2.2 points to 91.2, up from a revised 89.0 in January. The Expectations Index, which measures short-term outlook for income, business, and labor market conditions, posted a 4.8-point increase to 72.0, marking its largest monthly gain since July.
A key contributor to the improvement was the share of respondents reporting that jobs are plentiful. That figure increased to 28 percent, the highest level in three months, compared with 25.8 percent in January. At the same time, fewer consumers anticipated deterioration in the labor market. About 26.1 percent said they expect fewer jobs to be available over the next six months, down from 28.7 percent the previous month.
Income expectations also edged higher. Roughly 17.3 percent of consumers said they expect their incomes to rise in the coming months, while 12.3 percent anticipated declines.
“Confidence ticked up in February after falling in January, as consumers’ pessimistic expectations for the future eased somewhat,” said Dana M. Peterson, chief economist at the Conference Board. “Four of five components of the Index firmed.”
The data indicate that younger Americans were largely responsible for the overall improvement. Confidence rose among consumers under age 35, including members of Generation Z, while older age groups reported declining sentiment. The Conference Board said those under 35 “continued to be the most optimistic,” noting that Gen Z confidence increased on a six-month moving average basis even as all other generations recorded declines.
Despite gains in forward-looking measures, assessments of current conditions were more mixed. The Present Situation Index, which evaluates consumers’ views of existing business and labor market conditions, fell 1.8 points to 120.0. Respondents reported weaker perceptions of current business conditions even as expectations for the months ahead improved.
Inflation expectations remained elevated but showed little change from January levels, rather than accelerating. Fewer consumers described a recession as “very likely” over the next year, while more respondents characterized such an outcome as “not likely.”
Plans for major purchases increased in February. Intentions to buy automobiles continued trending upward on a six-month moving average basis, with a preference for used vehicles. Homebuying plans, while lower on a six-month basis, remained higher than levels recorded a year earlier.
Although February’s reading reflected improvement, overall confidence remains well below the four-year peak of 112.8 reached in November 2024 following the re-election of President Donald Trump.
The survey results were finalized prior to the Supreme Court’s recent decision regarding tariffs.
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