Consumer Confidence Slips Again In February  

 

• Consumer confidence dipped for the second straight month as stubborn inflation and anxiety over a potentially slowing economy weighed on Americans. The Conference Board reported Tuesday that its consumer confidence index slipped to 102.9 in February from a reading of 106 in January.
• The business research group’s present situation index — which measures consumers’ assessment of current business and labour market conditions — ticked up to 152.8 from 151.1 last month. The board’s expectations index — a measure of consumers’ six-month outlook for income, business and labour conditions — tumbled to 69.7 in February from 76 in January. A reading under 80 often signals a recession in the coming year, the Conference Board said.
• Consumers have been a pillar in the U.S. economy. They have not slowed spending even as the Federal Reserve tightens its monetary policy and signals more rate hikes ahead in its effort to cool the economy and bring down persistent, four-decade-high inflation.
• Earlier in February, the government reported that retail sales jumped 3% in January following a two-month slide. Americans boosted their spending at stores and restaurants at the fastest pace in nearly two years. But that confidence could be waning.
• The board says consumers appear to be showing early signs of pulling back their spending, particularly on big-ticket items like cars, major appliances and homes. Plans to take vacations were also dialled back in February.
• Earnings reports from major retailers this month have echoed consumer anxiety. While Target, Home Depot and others largely met Wall Street’s quarterly sales and profit expectations, they have cut their forecasts for 2023 with inflation lingering longer than expected.

(Source: AP News)