Source: The Conference Board
US consumer confidence hit 110.5 in February, down from 111.1 in January, marking the second straight month of weakening expectations. SPY is down -0.25%, DXY is down -0.16%.
- The consumers’ assessment of current conditions in the business and labor market still improved, with the index up from 144.5 in January to 145.1 in February.
- The Expectations Index fell to 88.8 in February from 87.5, implying weaker short-term outlook in income, business, and labor market conditions.
- Conference Board’s Lynn Franco says the gain in the Present Situation Index suggests the economy expanded in the first quarter, although it did not gain momentum. The fall in short-term growth prospects points to a moderate growth in the first half of 2022.
- Franco says consumers still remain confident of short-term growth but do not see the economy picking steam in the near future. He sees surging inflation as the headwind in the coming months.