Consumer confidence improved in February as more Americans reported plentiful job opportunities and grew less pessimistic about the economic outlook, according to data released Tuesday by the Conference Board.
The share of consumers saying jobs are plentiful climbed to 28 percent, a three-month high, up from 25.8 percent in January. The Conference Board’s Consumer Confidence Index increased 2.2 points to 91.2, from an upwardly revised 89.0 in January. The Expectations Index—measuring consumers’ short-term outlook—jumped 4.8 points to 72.0, the largest monthly gain since July.
The improvement was driven by younger Americans. Confidence rose for consumers under age 35 and Generation Z while falling for older respondents. The under-35 group “continued to be the most optimistic,” the Conference Board said, with Gen Z confidence rising on a six-month moving average basis while all other generations declined.
Fewer consumers expected job losses in the next six months, with 26.1 percent anticipating fewer jobs available compared to 28.7 percent last month.
Income expectations also improved slightly, with 17.3 percent expecting higher incomes versus 12.3 percent expecting 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.”
Inflation expectations were “little changed but remained elevated” rather than accelerating. The share of consumers saying a recession is “very likely” over the next 12 months fell, while those saying it’s “not likely” rose.
The February reading remained well below the four-year peak of 112.8 reached in November 2024, just after the re-election of President Donald Trump. The Present Situation Index—measuring current conditions—declined 1.8 points to 120.0, as views on current business conditions deteriorated. But all three forward-looking components improved, with consumers less negative about future business and labor market conditions.
Plans to buy big-ticket items over the next six months rose in February. Auto-buying plans continued trending upward on a six-month moving average, with consumers preferring used cars. Homebuying expectations were above year-ago levels despite retreating on a six-month basis.
The results are from a survey concluded before the Supreme Court’s recent tariff decision.
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