Consumer Confidence Index slips
After rising steadily in recent months, the Conference Board Consumer Confidence Index decreased from 56.5 in January to 46.0 in February.
A100 on the scale equates to the index level of 1985.
"Consumers' short-term outlook also took a turn for the worse, with fewer consumers anticipating an improvement in business conditions and the job market over the next six months," said Lynn Franco, director of the Conference Board Consumer Research Center. "Consumers also remain extremely pessimistic about their income prospects. This combination of earnings and job anxieties is likely to continue to curb spending."
Concerns about current business conditions pushed the Present Situation Index down to 19.4, its lowest level in 27 years. Also, the Expectations Index declined to 63.8 from 77.3 last month.
Consumers' assessment of current-day conditions soured in February. Those claiming conditions are "good" decreased to 6.2% from 8.5%, while those claiming business conditions are "bad" increased to 46.3% from 44.7%. Consumers' assessment of the labor market was also more pessimistic. Those saying jobs are "hard to get" rose to 47.7% from 46.5%, while those saying jobs are "plentiful" decreased to 3.6% from 4.4%.